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.  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.
Sumflow 20:24, October 16, 2010 (PDT)