™A $1,000 bond with a 4% annual coupon promises $40 a year under its terms, subject to issuer ability to pay and other security-specific risks.
Bonds & Rates
Bond
A debt security representing money lent to an issuer under stated terms.
Plain-English context
Put the definition to work.
A contractual promise is not a certainty. Check issuer credit, priority, currency, call provisions and settlement terms.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. FINRA — Bonds and risks