Bond Fund

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Bond Fund

A fund invested primarily in bonds and other debt instruments.. A bond is a long term promissory note. A written obligation that makes a person responsible for the actions of another. [1] Bonds have a limited life span, and pay interest to the lender. The major difference between a Bond fund and a Stock fund, is that the Bond funds owners are creditors to the companies, whereas the Stock fund owners, have an equity stake in the company.

Bonds from "anything that binds," "householder," "dweller, [1] "condition of a serf or slave” "dwell, prepare, inhabit.” [2]

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