Bond

What is a Bond?

Bonds are debt securities that represent a loan made by an investor to a borrower, typically a government or corporation. When an individual or institution buys a bond, they are essentially lending money to the issuer in exchange for periodic interest payments and the return of the bond's face value when it matures. Bonds have a specified term, or maturity date, at which point the principal is repaid in full. They are widely used by governments and companies to raise capital and are considered relatively lower-risk investments compared to stocks, as they offer fixed interest payments and a defined repayment schedule