A long-term, interest-bearing instrument, in the form of a certificate, issued to the public by a corporate or governmental entity as a way to borrow money and registered on the books of the issuer. The obligor promises to repay the money on or before a specific date and makes regular interest payments until then. The owner of the bond is not a stockholder and has no ownership interest in the entity, but is only a creditor and the debt is often secured by a lien on the entityÂ’s property. Interest is paid by redeeming a coupon. See also bond and debenture.