Corporate Finance → Corporation → Financing Decision → Bond

A bond is an asset that pays the regular interest payments and repay the original investment at the expiry date of the bond.

Regular interest payments are called coupon. The original investment is called the face value and the date of expiry is called maturity or the date of maturity.

Definition
A bond is an asset that pays the regular coupon, and repay the face value at the maturity.

There could be several types of bonds depends on the terms and conditions of the bonds. A bond issued by a government is called government bond, and a bond issued by a corporation is called corporate bond.