Bond is a kind of instrument and it comes in the category of the Debt instrument . It is called debt instrument because it is used to take money (Borrow Money) from other peoples (Investor) at fixed rate of interest. the company or institution which issue bond have obligations to pay the interest mentioned initial and Principal money. You can assume like Fixed deposit. In fixed deposit you give your money to Bank but in the case of you give your money to the Company or institution.

A bond is a debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.