what is a bond?

Answer 1

You know what you are referring to but how do you expect the reader of your question to?
Bond - Financial
Bond - Family
Bond - Secure
etc.............

Answer 2

investing wise: A debt investment with which the investor loans money to an entity (company or government) that borrows the funds for a defined period of time at a specified interest rate.

The indebted entity issues investors a certificate, or bond, that states the interest rate (coupon rate) that will be paid and when the loaned funds are to be returned (maturity date). Interest on bonds is usually paid every six months (semiannually). The main types of bonds are the corporate bond, the municipal bond, the Treasury bond, the Treasury note, the Treasury bill and the zero-coupon bond.

The higher rate of return the bond offers, the more risky the investment. There have been instances of companies failing to pay back the bond (default), so, to entice investors, most corporate bonds will offer a higher return than a government bond. It is important for investors to research a bond just as they would a stock or mutual fund. The bond rating will help in deciphering the default risk.

Answer 3

As you are in the Investing section of Answers, I assume you mean an investment bond. This is a Loan to a specific company, for instance.
Say Tesco wanted to raise some capital to open a new store.
They would offer bonds to the value they are looking for. They would promise to pay a percentage interest for the life of the bond, typically many years say 30. The percentage they offer will stay the same throughout the bonds life. At the end, they repay the face value of the bond. Bonds can be traded in the same way as shares can be.The problem can be that as a fixed interest rate is paid, their profitability depends upon the current bank of England exchange rate. Hope this helps.

Answer 4

I assume that you are asking in the investing sense.

A bond is a small portion of a large loan by a corporation or government.
Say a company wants to build a factory or a government wants to build a road or a school.
They go out and issue a large bond for, say, $10,000,000. This is then broken up into chunks, typically $1,000 each. The entity then offers an interest rate that depends on the credit rating of that entity (higher rate=worse rating). Investors then will loan the entity money by buying the bond.
The interest payments then periodically go to whoever holds the bond, for the length of the loan, which also varies.
There are so-called "risk-free" bonds in stable governments like the US that offer very low rates but are the closest thing to sure bets out there. Not all government bonds are risk-free, i.e. some cities or small counties occasionally default, so it is usually wise to take that into consideration.
Municipal and state bonds offer one feature that corporate bonds don't: tax free interest income. All the money you get from the interest payments is income tax free. This actually stems from a clause in the constitution if memory serves.
Bonds can vary in value depending on interest rates at the time of sale.
For example: If you hold a bond that pays 5% interest, but the current "market rate" is 8%, that bond will sell at a "discount" because it pays out less than the current going rate. The opposite is true for bonds that pay above the market rate, they sell at a "premium".
The actual mechanics of how to value a bond are a bit more complicated than I will get into here. Read up on "time value of money" and "net present value" in any good investing glossary.

Lastly at the end of the bond/loan period, pays back the "face value" of the bond, again typically $1000 dollars.

This is the very basics of bonds. It gets VERY complicated from here.

Below is the link to yahoo finance, something that I swear by, as a very good resource. It includes a glossary of terms, some interesting (pardon the pun) calculators and so forth.

Hope this helps.

Answer 5

In the financial world a "bond" is a loan for a specific amount of time, for a specific amount money.

TWO EXAMPLES;
The US Gov't has "Savings Bonds" for a loan to the Gov't. You get paid interest.
A corportation sells a bond to get a loan for less money (cost) than it would be from a bank.

Answer 6

Take your pick:

Something, such as a fetter, cord, or band, that binds, ties, or fastens things together.

Confinement in prison; captivity. Often used in the plural.

A uniting force or tie; a link: the familial bond.

A binding agreement; a covenant.

A duty, promise, or other obligation by which one is bound.

A substance or agent that causes two or more objects or parts to cohere.

The union or cohesion brought about by such a substance or agent.

A chemical bond.

A systematically overlapping or alternating arrangement of bricks or stones in a wall, designed to increase strength and stability.

Law.
A written and sealed obligation, especially one requiring payment of a stipulated amount of money on or before a given day.

A sum of money paid as bail or surety.

A bail bondsman.

A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.

The condition of taxable goods being stored in a warehouse until the taxes or duties owed on them are paid.

An insurance contract in which an agency guarantees payment to an employer in the event of unforeseen financial loss through the actions of an employee.

Bond paper.

Answer 7

My name ish Bond, Jamesh Bond.

Answer 8

Wow how annoying is it that people criticise you but haven't even looked at the category your answer is in. I will give them all thumbs down. At least some people answered your question.

Answer 9

There are many diffrent definentions of the word bond.

http://en.wikipedia.org/wiki/Bond

It's a great source to find your answer.

Answer 10

All the definitions of the meaning bond are given below.

chemical bond: an electrical force linking atoms

In finance and economics, a bond or debenture is a debt instrument that obligates the issuer to pay to the bondholder the principal (the original amount of the loan) plus interest. Thus, a bond is essentially an I.O.U. (I owe you contract) issued by a private or governmental corporation. The corporation "borrows" the face amount of the bond from its buyer, pays interest on that debt while it is outstanding, and then "redeems" the bond by paying back the debt. ...
en.wikipedia.org/wiki/Bond

When laying bricks, the manner in which the bricks overlap is called the bond. A brick laid with its longest side exposed is called a stretcher, as opposed to a header, where only the end of the brick can be seen in the brickwork.
en.wikipedia.org/wiki/Bond_(masonry)

Bond is a crossover classical string quartet, similar in style to Vanessa Mae.
en.wikipedia.org/wiki/Bond_(band)

A certificate of debt issued to raise funds. Bonds typically pay a fixed rate of interest and are repayable at a fixed date.
www.misys.com/investors/shareservices/glossary/index.asp

A written agreement by which a person insures he will pay a certain sum of money if he does not perform certain duties property.
brandonlclark.com/glossary.html

The debt instrument (or “IOU”) of a corporation or government entity that promises to pay a specified rate of interest for a specified time period, with principal to be repaid when the bond matures.
https://www.cbtfinancial.com/clearfield/cms/program/content/65.php

An interest-bearing promise to pay a specified sum of money -- the principal amount -- due on a specific date.
www.reliancemutual.com/mportal/VirtualPageView.jsp

Adhesion of concrete or mortar to reinforcement, or to other surfaces. The adhesion of cement paste to aggregate.
www.moxie-intl.com/glossary.htm

A debt security greater than one year wherein an issuer contracts to pay the owner a fixed principal amount on a stated future date. Typically, there are also interest payments over the life of the bond.
www.ofina.on.ca/debt/glossary.html

A long-term debt instrument with the promise to pay a specified amount of interest and to return the principal amount on a specified maturity date.
www.globefund.com/centre/Glossary_IFIC.html

Basically an IOU or promissory note of a corporation, usually issued in multiples of $1,000 or $5,000, although $100 and $500 denominations are not unknown. A bond is evidence of a debt on which the issuing company usually promises to pay the bondholders a specified amount of interest for a specified length of time, and to repay the loan on the expiration date. In every case a bond represents debt its holder is a creditor of the corporation and not a part owner, as is the shareholder.top
www.retirement-plan-center.com/glossary.htm

A bond is required for all hires. You may be asked to sign a separate security bond in the form of a Credit Card imprint, or give a cash deposit. This bond is held by PEGASUS and is not banked. It guarantees that the vehicle will be returned on time and in the condition that it was hired.
www.carrentalspicton.co.nz/terms-conditions.php

A contract between a borrower and a lender in which the borrower promises to pay a specified rate of interest for each period the bond is outstanding and repay the principal at the maturity date.
www.finet.com.hk/accounting/b.htm

A debt instrument that is a "promise to pay" issued by corporations, federal and state goverments, and municipalities to raise capital. The bond issuer promises to pay the holder of the bond the principal amount of the loan when the bond matures and a fixed rate of interest periodically during the term of the bond.
www.northernfunds.com/resources/glossary/b.html

A long-term debt security of the Government or a corporation with maturity of 10 years or more from the issue date. Interest is usually paid every six months and its face value returned, repaid at maturity.
www.stockpointonline.com/stockterms.html

a long-term debt security, or IOU, issued by a government entity or corporation that generally pays a stated rate of interest and plans to return the face value on the maturity date. Bonds do not represent equity ownership.
www.angelfire.com/il/fafp/glossary.html

An interest-bearing certificate of debt with a maturity date. An obligation of a government or business corporation. A real estate bond is a written obligation usually secured by a mortgage or a deed of trust.
nwmservices.com/glossary.shtml

A relation between two Bluetooth devices defined by creating, exchanging and storing a common link key. The bond is created through the bonding or LMP-pairing procedures.
www.atmel.com/products/Bluetooth/terms.asp

A certificate of indebtedness in which the issuer (borrower) promises to pay the bondholder (creditor) a specified amount of interest for a specified time period and to repay the debt at maturity. Obligations that are due in more than one year are classified as bonds whereas if the debt is for less than one year, it is called a "note." Bondholders are creditors of the issuer and they do not have ownership privileges. ...
www.tiaa-crefbrokerage.com/invest_glosry_BfBo.htm

security, either in the form of money or personal recognizance that is placed with the Court in order to insure that the Defendant will appear in Court. If the Defendant fails to appear, the bond money may be forfeited, and a warrant issued for his arrest.
www.siloamsprings.com/departments/district_court/legal_terms

A sum of money paid by a tenant and held by the Rental Bond Board to ensure against defaulting on payment and damage to the property.
www.aaamortgagesolutions.com.au/glossary.htm

A certificate representing creditor ship; the issuer pays interest on specific dates and redeems by paying the principal at maturity.
www.psca.org/espanol/glossary_e.html

Bonds are debt and are issued for a period of more than one year. The US government, local governments, water districts, companies and many other types of institutions sell bonds. When an investor buys bonds, he or she is lending money. The seller of the bond agrees to repay the principal amount of the loan at a specified time. Interest-bearing bonds pay interest periodically.
www.thehollandergroup.com/Glossary.htm

A certificate of a debt on which the issuer (usually a government or large corporation) pays a specific amount of interest for a specified length of time and promises to repay the loan to the holder at its maturity. Specific assets are pledged by the issuer as security for the bond. top of page
www.vantis.mb.ca/investments/inv_gloss.asp

(bond) (bond) 1. the linkage between two atoms or radicals of a chemical compound. 2. a mark used to indicate the number and attachment of the valences of an atom in constitutional formulas; it is represented by a pair of dots or a line between the atoms, eg, H—O—H, H—C[tbond]C—H or H:O:H, H:C:::C:H.
www.mercksource.com/pp/us/cns/cns_hl_dorlands.jspzQzpgzEzzSzppdocszSzuszSzcommonzSzdorlandszSzdorlandzSzdmd_b_18zPzhtm

An insurance agreement by which one party is insured against loss or default by a third party. In the construction business a performance bond ensures the interested party that the contractor will complete the project.
www.sarasotafloridausa.com/real-estate-terms.html

Refers to the pattern formed by mortar joints between bricks, blocks or stones.
www.affordablehouse.com/glo.html

A long-term debt security issued by a government or corporation promising repayment of a given amount by a given date, plus interest. Bonds are a component of long-term debt in the liabilities section of the balance sheet.

Hope this helps.