bond

In commerce, a security issued by a government, local authority, company, bank, or other institution on fixed interest. Usually a long-term security, a bond may be irredeemable (with no date of redemption), secured (giving the investor a claim on the company's property or on a part of its assets), or unsecured (not protected by a lien). Bonds are generally issued for a fixed period, at a fixed (nominal) value, are repayable on a fixed date (the maturity date), and pay a fixed rate of interest during that period. Property bonds are nonfixed securities with the yield fixed to property investment. Bonds are bought and sold in a similar way to equities. Financial institutions often consider the prevailing interest rates when setting the price of bonds in an attempt to make them attractive to purchasers. See also Eurobond.