# Bond A bond is a [security](security.md) financial product that represents a promise by a borrower to pay a lender their principal and periodic interest (called a *coupon*) on a loan. ## References 1. Roche, Cullen O. 2011. ‘Understanding the Modern Monetary System’. http://ssrn.com/paper=1905625. 1. Varoufakis, Yanis. Foundations of economics: A beginner's companion. Routledge, 2002. 1. Grinold, Richard C., and Ronald N. Kahn. Active portfolio management: Quantitative theory and applications. Probus, 1995. 1. Wilmott, Paul. Paul Wilmott introduces quantitative finance. John Wiley & Sons, 2007.