In other words, a bond is a debt instrument . Other common terms for these debt instruments are notes and debentures .
Most bonds pay a fixed rate of interest for a fixed period of time.
In the UK, government bonds are called gilts . Let's say a company needs to build a new office building, or needs to buy manufacturing equipment or an aircraft. Or maybe a government needs to pay for an extensive programme of building works. Whatever the need, a large sum of money will be needed to get the job done. One way is simply to arrange for banks or others to lend the money.