There are several definitions for the word "bond." First, bonds can can be described as agreements with legal force. It is also considered a promise, a pledge, a vow, an oath, a word of honor, an agreement, or a contract.
When it comes to the financial world, it can be described as an official document in which a government or company promises to pay back an amount of money that is borrowed. It is also understood that the borrower will be paying interest on the borrowed money.
They are a form of debt. Often, local, county or state governments will use them to help pay for public projects. The federal government can issue them to help pay for its debt.