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Finance & Banking vocabulary · Corporate Finance

Bond

Meaning in finance & banking, with examples

/bɑːnd/nounCommon term

In finance & banking, bond means: A debt security that a government or company sells to investors to borrow money. It pays regular interest, called a coupon, and returns the full amount at maturity.

In Turkish: tahvil, bono, borçlanma aracı

How it is used

Used in corporate finance, treasury and markets. Companies issue bonds; investors buy and hold them. Bond prices and yields move in opposite directions. Banks hold government bonds for liquidity.

Example sentences

  1. The company issued a five-year bond to refinance its bank loans.

  2. When rates rise, the value of the bank's bond portfolio falls.

Common collocations

  • issue a bond
  • government bond
  • corporate bond
  • bond yield
  • bond market
  • maturityThe date when a loan, deposit or bond ends and the principal must be repaid, or the length of time until that date.
  • interest rateThe price of borrowing money, shown as a percentage of the amount borrowed or saved for a period, usually one year.
  • liquidityHow easily an asset can be turned into cash without losing value, or how much cash and easily sold assets a bank or company has to meet its payments.
  • capitalMoney and other financial resources used to start and run a business; for banks, the owners' funds that absorb losses and protect depositors.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Corporate Finance

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This page explains English vocabulary for learners. It is not financial advice.