Bond
Financial Dictionary — Finance & Capital Markets
Definition
Bond A certificate of debt issued to raise funds. It normally has a fixed rate of interest and is repayable at a fixed date; A formal written promise to pay interest every six months and the principal amount at maturity, and its a commonly used form of long term debt.
Detailed Explanation
A bond is a debt instrument issued to raise funds. The issuer promises to pay periodic interest (coupon) and repay principal at maturity. Bonds are commonly used for long-term financing.
Common Uses
- Used in capital markets for disclosure, valuation, and investor communication.
- Used when interpreting securities, filings, and market indicators.
- Used when interpreting securities, filings, and market indicators.
Practical Example
- Example: Investors reference **Bond** when assessing risk/return and interpreting public disclosures.
Why This Term Matters
- Why it matters: Improves transparency for investors and supports pricing, funding, and governance decisions.