1

bond

play
noun \ ˈbänd \
Updated on: 26 Jul 2017

Definition of bond

1 :something that binds or restrains :fetter
  • prisoners freed from their bonds
  • the bonds of oppression
2 :a binding agreement :covenant
  • united in the bonds of holy matrimony
  • My word is my bond.
3 a :a band or cord used to tie something
b :a material (such as timber or brick) or device for binding
c chemistry :an attractive force that holds together the atoms, ions, or groups of atoms in a molecule or crystal
  • chemical bonds
d :an adhesive, cementing material, or fusible ingredient that combines, unites, or strengthens
4 :a uniting or binding element or force :tie
  • the bonds of friendship
5 a :an obligation made binding by a forfeit of money; also :the amount of the money guarantee
  • I have sworn an oath, that I will have my bond
  • —Shakespeare
  • The accused was released on $40,000 bond.
b :one who provides bail or acts as surety (see surety 3)
c finance :an interest-bearing certificate of public or private indebtedness
  • money that she had invested in stocks and bonds
d :an insurance agreement pledging that one will become legally liable for financial loss caused to another by the act or default of a third person or by some contingency over which the third person may have no control
6 masonry :the systematic lapping (see 2lap 4a) of brick in a wall
7 :the state of goods made, stored, or transported under the care of an agency until the duties or taxes on them are paid
  • you may leave … tobacco in bond with customs
  • —Richard Joseph
8 alcohol :a 100-proof straight whiskey aged at least four years under government supervision before being bottled called also bonded whiskey

Examples of bond in a Sentence

  1. a daughter's bond with her mother

  2. Recent events have helped to strengthen the bonds between our two countries.

  3. My roommate and I share a common bond because we both grew up in the Midwest.

  4. She has invested most of her money in stocks and bonds.

Recent Examples of bond from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'bond.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of bond

Middle English band, bond — more at band


2

bond

verb

Definition of bond

transitive verb
1 masonry :to lap (a building material, such as brick) for solidity of construction
2 a :to secure payment of duties and taxes on (goods) by giving a bond (see 1bond 5a)
  • warehouses for bonding tobacco
b :to convert into a debt secured by bonds (see 1bond 5a)
c insurance :to provide a bond (see 1bond 5d) for or cause to provide such a bond
  • bond an employee
3 a :to cause to adhere firmly
  • Heat is used to bond the plastic sheets together.
b :to embed in a matrix (see matrix 3b)
  • abrasive material bonded in a resinous binder
c chemistry :to hold together in a molecule or crystal by chemical bonds (see 1bond 3c)
intransitive verb
1 :to hold together or solidify by or as if by means of a bond (see 1bond) or binder (see binder 3)
  • The glue didn't bond to the glass.
2 :to form a close relationship especially through frequent association
  • the new mother bonded with her child
  • The retreat was a great bonding experience for the team.

bondable

play \ˈbän-də-bəl\ adjective

bonder

noun

Examples of bond in a Sentence

  1. Heat was used to bond the sheets of plastic together.

  2. The poster was bonded to the wall with glue.

Recent Examples of bond from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'bond.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of bond

see 1bond

bond Synonyms

Synonyms
commune, click, relate
Related Words
befriend; empathize, identify, sympathize

3

bond

adjective

Definition of bond

archaic
:bound in slavery

Origin and Etymology of bond

Middle English bonde, from bonde customary tenant, from Old English bōnda householder, from Old Norse bōndi


Financial Definition of BOND

bond

What It Is

A bearer bond, often called a coupon bond, is a bond whose certificate includes small detachable coupons. The coupons grant interest payments to the holder from the borrower.

How It Works

Actual bearer bonds are uncommon today because nearly all bonds are registered electronically rather than in certificate form. (although some bondholders still choose to receive paper certificates). Therefore, the term coupon refers to the interest rate of a bond rather than the physical nature of the certificate.

In the 1980s, some financial institutions started buying bearer bonds and selling the coupons as separate securities, called strips.

Let's assume you purchase a $1,000 XYZ Company bearer bond. The coupon rate on the bond is 5%, which means the issuer will pay you 5% interest per year, or $50, on the face value of the bond ($1,000 x 0.05). Even if your bond trades for less than $1,000 (or more than $1,000), the issuer is still responsible for paying you $50 per year. To claim your interest payment, you would simply clip off the appropriate coupon from the bond's certificate and show it to an agent of the issuer.

Why It Matters

Coupon bonds are called bearer bonds for a reason. That is, anyone who presents the coupon to the issuer is entitled to the interest payment even if that person is not the owner of the bond. Therefore, since bearer bonds offer many fraud and tax evasion opportunities, they are nearly unheard of today.

Instead, modern bonds are usually registered bonds or book entry bonds. Registered bonds are bonds with physical certificates that describe the terms of the debt, and the registered holder receives interest payments automatically from the issuer. Book entry bonds are bonds that are electronically registered to the financial institution acting on behalf of the investor. The investor receives a receipt for his or her bond in lieu of a certificate, and the investor's account at the financial institution receives the interest payment.



BOND Defined for English Language Learners

bond

play
noun

Definition of bond for English Language Learners

  • : something (such as an idea, interest, experience, or feeling) that is shared between people or groups and forms a connection between them

  • finance : an official document in which a government or company promises to pay back an amount of money that it has borrowed and to pay interest for the borrowed money

  • : a chain or rope that is used to prevent someone from moving or acting freely


bond

verb

Definition of bond for English Language Learners

  • : to join (things) together

  • : to join to something else

  • : to form a close relationship with someone


BOND Defined for Kids

1

bond

play
noun \ ˈbänd \

Definition of bond for Students

1 :something that binds
2 :the condition of being held together
  • The glue forms a strong bond.
3 :a force or influence that brings or holds together
  • a bond of friendship
4 :a chain or rope used to prevent someone from moving or acting freely
5 :a promise to do something
  • My word is my bond.
6 :a legal agreement in which a person agrees to pay a sum of money if he or she fails to do a certain thing
7 :a government or business certificate promising to pay a certain sum by a certain day

2

bond

verb

Definition of bond for Students

bonded; bonding
1 :to stick or cause to stick together
2 :to form a close relationship
  • The girls quickly bonded.

Medical Dictionary

bond

play
noun \ ˈbänd \

medical Definition of bond

:an attractive force that holds together atoms, ions, or groups of atoms in a molecule or crystal usually represented in formulas by a line

bond

verb

Law Dictionary

1

bond

noun

legal Definition of bond

1 a :a usually formal written agreement by which a person undertakes to perform a certain act (as appear in court or fulfill the obligations of a contract) or abstain from performing an act (as committing a crime) with the condition that failure to perform or abstain will obligate the person or often a surety to pay a sum of money or will result in the forfeiture of money put up by the person or surety; also :the money put up
Note: The purpose of a bond is to provide an incentive for the fulfillment of an obligation. It also provides reassurance that the obligation will be fulfilled and that compensation is available if it is not fulfilled. In most cases a surety is involved, and the bond makes the surety responsible for the consequences of the obligated person's behavior. Some bonds, such as fidelity bonds, function as insurance agreements, in which the surety promises to pay for financial loss caused by the bad behavior of an obligated person or by some contingency over which the person may have no control.
appeal bond
:a cost bond required by a rule of procedure to be given by an appellant in order to cover the costs of an appeal
appearance bond
:an often unsecured bond given by a defendant in a criminal trial to guarantee the defendant's appearance in court as scheduled
attachment bond
1 :a bond given by a plaintiff seeking to attach the defendant's property that ensures payment to the defendant of any damages suffered because of the attachment in the event the plaintiff loses the suit
2 :a bond given by a defendant in order to have an attachment released that ensures payment of a judgment awarded to the plaintiff
bail bond
:a bond given by a criminal defendant or by his or her surety to ensure compliance with the terms of bail and especially with the requirement that the defendant appear in court as scheduled
bid bond
:a surety bond often required of contractors bidding on construction work to ensure that the successful bidder will accept the job and will also provide a performance bond
blanket bond
:a fidelity bond covering all persons or all of a category of persons employed (as by a bank) or holding office (as of a trustee in bankruptcy)
completion bond
:performance bond in this entry
contract bond
:a bond given to protect a person or business entity against loss caused by a breach of a contract (as for building, construction, or supply)
cost bond
:a bond given by a plaintiff to ensure payment of court costs
depository bond
:a bond given by a bank often for deposits from state or municipal governments that covers the amount of the deposit in the event of the bank's insolvency
fidelity bond
:a bond or other form of contract to cover an employer or government entity against financial loss due to the dishonesty of an employee or other trusted person
injunction bond
:a bond required to be given by the applicant for an injunction to cover costs and damages incurred by a party found to have been wrongfully enjoined
judicial bond
:a bond (as an appeal bond or bail bond) required to be given in a court proceeding
license bond
:a surety bond required by law or as a condition to the conduct of a specific business or profession called also permit bond
payment bond
:a surety bond that covers payment to certain parties (as suppliers) in the event that a contractor breaches a construction contract
peace bond
:a bond required to be given by a defendant to ensure good behavior and discourage breaches of the peace
penal bond
:a bond that ensures payment of a stipulated sum in the event of a party's nonperformance and that is often required for government contracts
performance bond
:a surety bond that ensures a property owner (as a developer or municipality) of the completion of a construction contract or payment of actual damages to the extent of the bond in the event that the contractor fails to complete it called also completion bond
permit bond
:license bond in this entry
personal bond
:a criminal defendant's unsecured promise to appear in court as scheduled after release from custody
replevin bond
:a bond given by a plaintiff in a replevin action to cover losses to the defendant or court officer seizing the property in the defendant's possession and transferring it to the plaintiff in the event that the plaintiff loses the case
supersedeas bond
:a bond given by an appellant in order to obtain a stay of the judgment awarded at trial and for the purpose of ensuring that if the appellant loses the appeal the appellee will be paid the judgment plus any damages incident to the delay caused by the appeal
surety bond
:a bond in which a surety agrees to assume responsibility for the performance of an obligation of another in the event of a default
b :one who acts as a surety
2 :an interest-bearing document giving evidence of a debt issued by a government body or corporation that is sometimes secured by a lien on property and is often designed to take care of a particular financial need — see also collateralized mortgage obligation
accrual bond
:a bond that is usually the last tranche of a collateralized mortgage obligation and from which no payments of principal or interest are made until the earlier tranches are paid in full called also Z-bond
adjustment bond
:a bond that is issued in settlement of a prior obligation as part of a business reorganization and on which interest payments are usually contingent upon earnings
baby bond
:a bond having a face value of usually $500 or less
bearer bond
:a fully negotiable bond payable to its bearer — compare registered bond in this entry
book-entry bond
:a bond whose ownership is recorded by computer but for which no certificate is issued
convertible bond
:a bond that may be exchanged for another type of security (as common stock) at prearranged terms
coupon bond
:a bearer bond that has coupons that must be cut off and presented for payment of interest
debenture bond
:a bond backed by the general credit of the issuer rather than by a specific lien on particular assets :debenture
discount bond
:a bond with a market value lower than its face value
flower bond
:a Treasury bond that may be redeemed at face value before maturity if used in settling federal estate taxes
guaranteed bond
:a bond on which payment of interest or principal or both is guaranteed by a corporation other than the issuer
income bond
:a bond that pays interest at a rate based on the issuer's earnings
junk bond
:a high-risk bond that offers a high yield and is often issued to finance the takeover of a company
mortgage bond
:a bond secured by a mortgage on property — compare debenture
municipal bond
:a bond issued by a municipality to fund the expenses of running the government or of specific programs or projects
registered bond
:a bond registered in the name of the holder on the books of the company and issued with the name of the holder written on the bond certificate — compare bearer bond in this entry
revenue bond
:a bond issued by a public agency authorized to build, acquire, or improve a revenue-producing property (as a toll road) and payable solely out of the revenue derived from such property
savings bond
:a nontransferable registered bond issued by the U.S. government in denominations of $50 to $10,000
serial bond
:one of a series of bonds maturing periodically rather than on a single maturity date
Treasury bond
:a long-term government bond issued by or under the authority of the U.S. Treasury — compare Treasury bill at bill, Treasury note at note
zero-coupon bond
:a bond that is sold at a price significantly below face value, pays no annual interest, and is redeemable at full value at maturity — compare strip

2

bond

transitive verb

legal Definition of bond

1 :to convert into a debt secured by bonds
2 :to provide a bond for
  • bond an employee


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