BOND

Evidence of a long-term debt, by which the bond issuer (the borrower) is obliged to pay interest when due, and repay the principal at maturity, as specified on the face of the bond certificate. The rights of the holder are specified in the bond indenture, which contains the legal terms and conditions under which the bond was issued. Bonds are available in two forms: registered bonds, and bearer bonds.

A documentary obligation to pay a sum or to perform a contract; a debenture.

"Investors face a quandary. Cash offers a return of virtually zero in many developed countries; government-bond yields may have risen in recent weeks but they are still unattractive. Equities have suffered two big bear markets since 2000 and are wobbling again. It is hardly surprising that pension funds, insurers and endowments are searching for new sources of return."

A partial payment made to show a provider that the customer is sincere about buying a product or a service. If the product or service is not purchased the customer then forfeits the bond.

(often in the plural) A physical connection which binds, a band.

"The prisoner was brought before the tribunal in iron bonds."

To connect, secure or tie with a bond; to bind.

"The gargantuan ape was bonded in iron chains and carted onto the stage."

To cause to adhere (one material with another).

"The children bonded their snapshots to the scrapbook pages with mucilage."

To form a chemical compound with.

"Under unusual conditions, even gold can be made to bond with other elements."

To guarantee or secure a financial risk.

"The contractor was bonded with a local underwriter."