Bond

A certificate of debt, generally long term, under the terms of which an issuer contracts, amongst other things, to pay the holder a fixed principal amount on a stated future date and, usually, a series of interest payments during its life. It is issued by corporations, governments, or government agencies. The issuer makes regular interest payments on the bond and promises to pay back, or redeem, the face value of the bond at a specified point in the future, called the maturity date.