A legal claim against a firm that usually entitles the owner of the claim to receive a fixed annual coupon payment, plus a lump-sum payment at some future date, is known as

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A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer. Bonds are characterized by the fixed annual coupon payments they offer to investors, which is interest paid on the bond, and the return of the principal amount (the original loan amount) at the bond's maturity date.

A Legal Claim Against a Firm That Usually Entitles the Owner