Bond
Debt instrument paying fixed interest
What is Bond?
Bond A fixed-income debt instrument where an investor loans money to an entity (government or corporation) for a defined period at a fixed or variable interest rate. Bond yields affect the risk-free rate used in options pricing models like Black-Scholes.
Complete Definition
A fixed-income debt instrument where an investor loans money to an entity (government or corporation) for a defined period at a fixed or variable interest rate. Bond yields affect the risk-free rate used in options pricing models like Black-Scholes.
Related Terms
Want to Learn More?
Explore our educational resources and analytics tools to deepen your understanding.