Bond
Definition
A bond is a debt instrument issued by governments, municipalities, or corporations to raise capital. It represents a loan made by an investor to the issuer, who promises to repay the principal amount along with periodic interest payments.
Related terms
Coupon Rate: The fixed annual interest rate paid on a bond.
Maturity Date: The date when the principal amount of a bond becomes due and is repaid.
Credit Rating: An assessment of an issuer's creditworthiness, indicating their ability to repay debts.
"Bond" appears in:
Subjects (2)
AP Chemistry
Anatomy & Physiology
Study guides (1)
AP Macroeconomics - 4.1 Financial Assets
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About Us
About Fiveable
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Careers
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Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Cram Events
Merch Shop
Crisis Text Line
Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.