A bond is defined as:

A bond is a financial instrument that represents a loan made by an investor to a borrower, typically a governmental body or corporation. When an individual purchases a bond, they are essentially lending money to the issuer in exchange for periodic interest payments and the return of the bond's face value at maturity. This structure clearly defines the obligations of the borrower, including the amount borrowed, the interest rate, and the payment schedule.

In this context, the definition aligns with a bond being a certificate of indebtedness, highlighting the relationship between the borrower and the lender, as well as the financial responsibilities involved. This characteristic is crucial for understanding how bonds function within the larger framework of financial markets and investment strategies.