bond
Meaning
A bond is a formal agreement in which one party lends money to another, typically involving the payment of interest and the return of the principal amount at a later date.
💡 A common mistake is to confuse "bond" with "bonds" as a verb; in this context, it specifically refers to the financial instrument.
Example Sentences
Word in Context
Anna
has
been
saving
for
a
kitchen
renovation
and
went
to
the
bank
to
ask
about
safe
ways
to
invest
her
money
.
The
adviser
explained
that
a
bond
is
a
formal
agreement
in
which
the
bank
borrows
her
money
and
pays
interest
,
so
she
would
get
the
principal
back
after
a
set
time
.
She
liked
the
idea
because
the
payments
were
predictable
and
the
risk
seemed
low
compared
to
other
options
.
Before
she
decided
,
she
compared
the
interest
rates
and
checked
how
long
the
bond
would
last
.
In
the
end
,
she
chose
a
two
-
year
bond
that
matched
her
renovation
schedule
and
felt
more
confident
about
her
finances
.
Common Phrases
government bond
corporate bond
bond market
Related Words
Never forget "bond"
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