What is a Bond?

"Simply stated, bonds are debt. Think of a bond as a kind of loan, but instead of you taking out the loan from the bank, you are the bank that is loaning the money. When you buy a bond, you are literally loaning your money to an entity - be it a company, city, state, or federal government - and receiving regular interest payments."

Check out this infographic from Mint.com: In Graphics: What is a Bond?