A "bond" is a certificate or a debt instrument upon which the issuing company or governmental body promise to pay the bondholder a specified amount of interest for a specified length of time, and to repay the loan on the maturity date. A bondholder is a creditor of the corporation and not a part owner as is a shareholder. When an investor buys a bond, he, she or it is loaning money to the issuer and the issuer agrees to repay the principal and interest on specified dates.