Frequent question: What is Bond in simple words?

What is a bond simple definition?

A bond is simply a loan taken out by a company. Instead of going to a bank, the company gets the money from investors who buy its bonds. In exchange for the capital, the company pays an interest coupon, which is the annual interest rate paid on a bond expressed as a percentage of the face value.

What are bonds definition for kids?

Kids Definition of bond (Entry 2 of 2) 1 : to stick or cause to stick together. 2 : to form a close relationship The girls quickly bonded.

What is bond how it works?

A bond is an IOU. Those who buy such bonds are, put simply, loaning money to the issuer for a fixed period of time. At the end of that period, the value of the bond is repaid. Investors also receive a pre-determined interest rate (the coupon) – usually paid annually.

What bond means in law?

1. In commercial law, a borrower’s obligation to pay a stated amount of money after a stated amount of time. 2. In criminal law, an obligation to pay the court if a defendant fails to meet the terms of conditional release from custody.

What is a bond in science?

A bond is the sharing of electrons between two or more atoms, and it doesn’t matter which atoms they belonged to originally or how many electrons are involved. To my mother, who struggles with the difference between atoms and molecules, I refer to bonds as the “glue” between atoms.

THIS IS INTERESTING:  Question: Can you game Share pre ordered games?

What are the 5 types of bonds?

There are five main types of bonds: Treasury, savings, agency, municipal, and corporate. Each type of bond has its own sellers, purposes, buyers, and levels of risk vs. return. If you want to take advantage of bonds, you can also buy securities that are based on bonds, such as bond mutual funds.

What is the sentence of bond?

Bond sentence example. The bond I shared with Gabriel. The bond between them was weakening with him. I kept you quiet long enough for the bond to stick.