Bond (finance)

From Old English "bond" / "band", something that binds, the same root as "bind" and "band". A bond is a binding promise to repay: the borrower is legally bound to pay the holder interest and, eventually, the principal. The word’s core sense of a tie or obligation carries straight into finance.

  1. noun · /BOND/

    A loan made by an investor to a government or company, which pays regular interest and returns the sum at a set date.

    The investment where you are the lender — lending your money out for steady, contractual interest rather than buying a piece of ownership.

    Nearing retirement, she shifted savings from stocks into bonds for steadier, lower-risk income.

    Distinguish stock: a bond makes you a lender who is owed fixed payments, while a stock makes you a part-owner sharing in profits and losses — bondholders get paid before shareholders if a company fails.

  2. noun · /BOND/

    A close emotional connection or sense of attachment between people.

    The felt tie of loyalty and affection — between friends, parent and child, teammates — rather than a financial IOU.

    The months of shared hardship forged a deep bond between the crew.

    Close to kinship and sustained by loyalty — the felt tie between friends, family, or teammates, not the financial IOU that shares the word.

  3. noun · /BOND/

    The force of attraction that holds atoms together in a molecule or compound.

    The ‘glue’ of chemistry — the link, whether covalent or ionic, that binds atoms into stable structures.

    Breaking the bonds in glucose releases the energy a cell needs.

    When atoms bond in fixed proportions they form a compound built from pure elements. This is a literal binding, unlike the financial bond (a loan) or the emotional bond (a tie between people).