Glossary · Investing
Bond (investment)
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Definition: A loan to a government or company that pays a fixed rate of interest (the coupon) and returns the principal at maturity.
UK government bonds are called gilts. Corporate bonds pay higher yields but carry credit risk. Bond prices move inversely with interest rates: rising rates push existing bond prices down. Note: a fixed-rate savings 'bond' from a bank is a different product (a deposit, FSCS-protected).