CEFR B2

bonds

noun

Meaning

A financial instrument where an investor loans money to an entity (like a corporation or government) which borrows the funds for a defined period at a variable or fixed interest rate. Bonds are used by companies and governments to raise money.

Examples

  • The government issued treasury bonds to finance infrastructure projects.
  • She invested in corporate bonds for a more stable income stream than stocks.

Synonyms: ties, links, obligations, securities