A written promise to pay the stated debt with interest rate at specified date.

Bond is a written contractual obligation, usually issued by the borrower, agreeing to pay the amount stated on the document (called maturity value) at a particular date in the future (called maturity date).

Maturity value is usually the sum of:

  1. principal amount borrowed plus 
  2. interest payable at agreed frequency (monthly, semi-annually, yearly etc) that is usually stated as rate on the document itself (called coupon rate) plus 
  3. any premium agreed between the borrower and lender.