||This article does not have any sources. (July 2010)|
A bond is a contract between two parties.
Bonds have a maturity date. This means that at some point, the bond issuer has to pay back the money to the investors. They also have to pay the investors a little bit more than they paid for the bond.
Bonds are usually traded through brokers and are part of a financial instrument group called Fixed Income. Banks and financial institutions offers loans on different terms against the security of assets.