Open/new
Fixed /solved
Closed /validate
Reopen
Duplicate
Terminate
Deferred
Under observation
Work in progress

Defect--During requirement phase if we find its called as 
defect.A defect in requirement.

Bug-----During testing phase if we find its called a BUG.

Error Life Cycle-
1)Open
2)assigned(assigned to dev)
3)Dev-passed(after fixing)
4)Under testing(when testing team receives the fix)
5)Closed(if working fine)else reopen

Defect is the issue caught while Testing, When the as said is accepted by the 
developers then the as said is called as a Bug;
Error always occurs in the coding during Unit Testing by the development team. 
(isues regarding the coding are said Error's)

A Mistake in coding is called an ERROR. This mistake 
detected by test engineer during testing called defect(or) 
issue. This defect (or)issue accepted by defect tracking 
team as code related defect called BUG.

When we found a defect /Bug we will set the status New and 
set the severity and then assign to the inour seniour 
people based on the severity they will set the priority and 
then they will assign to corresponding developer based on 
the severity dev fix it.and again tester again re-testedhe 
will fix correctly close the bug, other wise then again re 
assign to the corresponding dev.

Bug life cycle is a process in which all the defects are 
identified and isolated.

its start with new-->open-->fixed-->fixed + verified--
>closed or if its not fixed then remain in reopen untill it 
gets fixed