bond   (bŏnd)    n.   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 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 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. v.   bond·ed, bond·ing, bonds v.   tr. To mortgage or place a guaranteed bond on. To furnish bond or surety for. To place (an employee, for example) under bond or guarantee. To join securely, as with glue or cement. To join (two or more individuals) in or as if in a nurturing relationship: "What bonded [the two men]—who spoke rarely and have little personal rapport—was patience and a conviction that uncontrolled inflation endangers . . . society" (Robert J. Samuelson). To lay (bricks or stones) in an overlapping or alternating pattern. v.   intr. To cohere with or as if with a bond. To form a close personal relationship. [Middle English, variant of band, from Old Norse; see bhendh- in Indo-European roots.] bond'a·bil'i·ty n., bond'a·ble adj., bond'er n.

Bond

Bond\, n. [The same word as band. Cf. Band, Bend.]

1. That which binds, ties, fastens, or confines, or by which anything is fastened or bound, as a cord, chain, etc.; a band; a ligament; a shackle or a manacle.

Gnawing with my teeth my bonds in sunder, I gained my freedom. --Shak.

2. pl. The state of being bound; imprisonment; captivity, restraint. "This man doeth nothing worthy of death or of bonds." --Acts xxvi.

3. A binding force or influence; a cause of union; a uniting tie; as, the bonds of fellowship.

A people with whom I have no tie but the common bond of mankind. --Burke.

4. Moral or political duty or obligation.

I love your majesty According to my bond, nor more nor less. --Shak.

5. (Law) A writing under seal, by which a person binds himself, his heirs, executors, and administrators, to pay a certain sum on or before a future day appointed. This is a single bond. But usually a condition is added, that, if the obligor shall do a certain act, appear at a certain place, conform to certain rules, faithfully perform certain duties, or pay a certain sum of money, on or before a time specified, the obligation shall be void; otherwise it shall remain in full force. If the condition is not performed, the bond becomes forfeited, and the obligor and his heirs are liable to the payment of the whole sum. --Bouvier. --Wharton.

6. An instrument (of the nature of the ordinary legal bond) made by a government or a corporation for purpose of borrowing money; as, a government, city, or railway bond.

7. The state of goods placed in a bonded warehouse till the duties are paid; as, merchandise in bond.

8. (Arch.) The union or tie of the several stones or bricks forming a wall. The bricks may be arranged for this purpose in several different ways, as in English or block bond (Fig. 1), where one course consists of bricks with their ends toward the face of the wall, called headers, and the next course of bricks with their lengths parallel to the face of the wall, called stretchers; Flemish bond (Fig.2), where each course consists of headers and stretchers alternately, so laid as always to break joints; Cross bond, which differs from the English by the change of the second stretcher line so that its joints come in the middle of the first, and the same position of stretchers comes back every fifth line; Combined cross and English bond, where the inner part of the wall is laid in the one method, the outer in the other.

9. (Chem.) A unit of chemical attraction; as, oxygen has two bonds of affinity. It is often represented in graphic formul[ae] by a short line or dash. See Diagram of Benzene nucleus, and Valence.

Arbitration bond. See under Arbitration.

Bond crediter (Law), a creditor whose debt is secured by a bond. --Blackstone.

Bond debt (Law), a debt contracted under the obligation of a bond. --Burrows.

Bond (or lap) of a slate, the distance between the top of one slate and the bottom or drip of the second slate above, i. e., the space which is covered with three thicknesses; also, the distance between the nail of the under slate and the lower edge of the upper slate.

Bond timber, timber worked into a wall to tie or strengthen it longitudinally.

Syn: Chains; fetters; captivity; imprisonment.

bond

A security issued by a corporation or public body and usually carrying a fixed rate of interest and a set date, called the bond's maturity, for redemption of the principal. Like a stock, a bond is a type of investment, but unlike a stock, a bond has a definite, but not necessarily fixed, yield. Some bonds have a feature known as a call, which gives the borrower an option to pay off the principal of the bond before its maturity, the date when the bond is due to be redeemed. (See municipal bonds and Treasury bills.)

bond  (n.)

Bond

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.

Investopedia Commentary

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, treasury bill, and the zero-coupon bonds.

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.

Related Links

Bond Basics Tutorial
Advanced Bond Concepts
Corporate Bonds: An Introduction To Credit Risk
Junk Bonds: Everything You Need to Know

See also: Bond Ladder, Bond Rating, Bond Swap, Brady Bond, Callable Bond, Convertible Bond, Corporate bond, Coupon, Coupon Bond, Discount Bond, Eurobond, Housing Bonds, Indenture, Junk Bond, Maturity, Mello Roo's, Municipal bond, Obligor, Premium bond, Put Bond, Tax Anticipation Notes (TAN), Treasury Bill, Treasury bond, Treasury note, Yield to Maturity, Zero-coupon bonds

Also spelled: bonds

bond

1. A long-term promissory note. Bonds vary widely in maturity, security, and type of issuer, although most are sold in $1,000 denominations or, if a municipal bond, $5,000 denominations.
2. A written obligation that makes a person or an institution responsible for the actions of another.

Main Entry: bond
Function: noun
1 a : a usually formal written agreement by which a person undertakes to perform a certain act (as appear in court or fulfill the obligations of a contract) or abstain from performing an act (as committing a crime) with the condition that failure to perform or abstain will obligate the person or often a surety to pay a sum of money or will result in the forfeiture of money put up by the person or surety; also : the money put up
NOTE: The purpose of a bond is to provide an incentive for the fulfillment of an obligation. It also provides reassurance that the obligation will be fulfilled and that compensation is available if it is not fulfilled. In most cases a surety is involved, and the bond makes the surety responsible for the consequences of the obligated person's behavior. Some bonds, such as fidelity bonds, function as insurance agreements, in which the surety promises to pay for financial loss caused by the bad behavior of an obligated person or by some contingency over which the person may have no control.

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appeal bond
: a cost bond required by a rule of procedure (as Federal Rule of Appellate Procedure 7) to be given by an appellant in order to cover the costs of an appeal

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appearance bond
: an often unsecured bond given by a defendant in a criminal trial to guarantee the defendant's appearance in court as scheduled

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attachment bond
1 : a bond given by a plaintiff seeking to attach the defendant's property that ensures payment to the defendant of any damages suffered because of the attachment in the event the plaintiff loses the suit
2 : a bond given by a defendant in order to have an attachment released that ensures payment of a judgment awarded to the plaintiff

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bail bond
: a bond given by a criminal defendant or by his or her surety to ensure compliance with the terms of bail and esp. with the requirement that the defendant appear in court as scheduled

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bid bond
: a surety bond often required of contractors bidding on construction work to ensure that the successful bidder will accept the job and will also provide a performance bond

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blanket bond
: a fidelity bond covering all persons or all of a category of persons employed (as by a bank) or holding office (as of a trustee in bankruptcy)

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com·ple·tion bond
: PERFORMANCE BOND in this entry

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contract bond
: a bond given to protect a person or business entity against loss caused by a breach of a contract (as for building, construction, or supply)

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cost bond
: a bond given by a plaintiff to ensure payment of court costs

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depository bond
: a bond given by a bank often for deposits from state or municipal governments that covers the amount of the deposit in the event of the bank's insolvency

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fidelity bond
: a bond or other form of contract to cover an employer against financial loss due to the dishonesty of an employee

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injunction bond
: a bond required to be given by the applicant for an injunction to cover costs and damages incurred by a party found to have been wrongfully enjoined

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judicial bond
: a bond (as an appeal bond or bail bond) required to be given in a court proceeding

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license bond
: a surety bond required by law or as a condition to the conduct of a specific business or profession called also permit bond

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pay·ment bond
: a surety bond that covers payment to certain parties (as suppliers) in the event that a contractor breaches a construction contract

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peace bond
: a bond required to be given by a defendant to ensure good behavior and discourage breaches of the peace

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penal bond
: a bond that ensures payment of a stipulated sum in the event of a party's nonperformance and that is often required for government contracts

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performance bond
: a surety bond that ensures a property owner (as a developer or municipality) of the completion of a construction contract or payment of actual damages to the extent of the bond in the event that the contractor fails to complete it called also completion bond

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permit bond
: LICENSE BOND in this entry

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personal bond
: a criminal defendant's unsecured promise to appear in court as scheduled after release from custody

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replevin bond
: a bond given by a plaintiff in a replevin action to cover losses to the defendant or court officer seizing the property in the defendant's possession and transferring it to the plaintiff in the event that the plaintiff loses the case

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supersedeas bond
: a bond given by an appellant in order to obtain a stay of the judgment awarded at trial and for the purpose of ensuring that if the appellant loses the appeal the appellee will be paid the judgment plus any damages incident to the delay caused by the appeal

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surety bond
: a bond in which a surety agrees to assume responsibility for the performance of an obligation of another in the event of a default b : one who acts as a surety
2 : an interest-bearing document giving evidence of a debt issued by a government body or corporation that is sometimes secured by a lien on property and is often designed to take care of a particular financial need —see also COLLATERALIZED MORTGAGE OBLIGATION

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accrual bond
: a bond that is usually the last tranche of a collateralized mortgage obligation and from which no payments of principal or interest are made until the earlier tranches are paid in full called also Z-bond

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adjustment bond
: a bond that is issued in settlement of a prior obligation as part of a business reorganization and on which interest payments are usually contingent upon earnings

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ba·by bond
: a bond having a face value of usually $500 or less

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bearer bond
: a fully negotiable bond payable to its bearer —compare REGISTERED BOND in this entry

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book–entry bond
: a bond whose ownership is recorded by computer but for which no certificate is issued

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convertible bond
: a bond that may be exchanged for another type of security (as common stock) at prearranged terms

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coupon bond
: a bearer bond that has coupons that must be cut off and presented for payment of interest

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debenture bond
: a bond backed by the general credit of the issuer rather than by a specific lien on particular assets : DEBENTURE

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discount bond
: a bond with a market value lower than its face value

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flower bond
: a Treasury bond that may be redeemed at face value before maturity if used in settling federal estate taxes

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guaranteed bond
: a bond on which payment of interest or principal or both is guaranteed by a corporation other than the issuer

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income bond
: a bond that pays interest at a rate based on the issuer's earnings

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junk bond
: a high-risk bond that offers a high yield and is often issued to finance the takeover of a company

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mortgage bond
: a bond secured by a mortgage on property —compare DEBENTURE

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municipal bond
: a bond issued by a municipality to fund the expenses of running the government or of specific programs or projects

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registered bond
: a bond registered in the name of the holder on the books of the company and issued with the name of the holder written on the bond certificate —compare BEARER BOND in this entry

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revenue bond
: a bond issued by a public agency authorized to build, acquire, or improve a revenue-producing property (as a toll road) and payable solely out of the revenue derived from such property

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sav·ings bond
: a nontransferable registered bond issued by the U.S. government in denominations of $50 to $10,000

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se·ri·al bond
: one of a series of bonds maturing periodically rather than on a single maturity date

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Treasury bond
: a long-term government bond issued by or under the authority of the U.S. Treasury —compare Treasury bill at BILL Treasury note at NOTE

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ze·ro–coupon bond
: a bond that is sold at a price significantly below face value, pays no annual interest, and is redeemable at full value at maturity —compare STRIP

Main Entry: bond
Pronunciation: 'bänd
Function: noun
: an attractive force that holds together atoms, ions, or groups of atoms in a molecule or crystal—usually represented in formulas by a line —bond verb

bond (bŏnd)
n.
The linkage or force holding two neighboring atoms of a molecule in place and resisting their separation, usually accomplished by the transfer or sharing of one or more electrons or pairs of electrons between the atoms.

bond   (bŏnd)  Pronunciation Key  (click for larger image in new window) A force of attraction that holds atoms or ions together in a molecule or crystal. Bonds are usually created by a transfer or sharing of one or more electrons. There are single, double, and triple bonds. See also coordinate bond, covalent bond, ionic bond, metallic bond, polar bond.

Bond

an obligation of any kind (Num. 30:2, 4, 12). The word means also oppression or affliction (Ps. 116:16; Phil. 1:7). Christian love is the "bond of perfectness" (Col. 3:14), and the influences of the Spirit are the "bond of peace" (Eph. 4:3).