Bond

A bond is a debt security owed by the issuer and payable with interest at the specified date of maturity. Essentially, the bond is a loan with the issuer being the borrower and the investor or bond holder being the lender. The interest on the bond is referred to as the "coupon." Bonds are issued for the purpose of financing long-term investments.

As an example, the United States Treasury Department uses the word "bond" to describe its issues with a maturity rate of more than ten years. (Issues with a maturity rate of from one to ten years are referred to as "notes.") Both terms are used in the financial world usually with bonds being large issues offered to the public and notes small issues for limited investors.

Like stock, bonds are securities but whereas stock may be held indefinitely, there is always a defined term or date of maturity for a bond.

More Terms Explained here