Bond – a security, a type of debt instrument. The issuer (organization issuing the bond) receives funds from individuals who purchase the bonds and guarantees to repay the investor the entire amount plus interest for the use of borrowed funds within a specified period. The interest may be paid at the end of the bond’s term (maturity) or periodically in parts (coupon income). The interest can be expressed as a discount from the bond’s nominal value. Bonds are classified based on their level of reliability. The higher the reliability rating, the lower the bond yield.