Bonds are debt securities issued by governments, municipalities, corporations, or other entities to raise capital. When you purchase bonds, you are essentially lending money with the expectation that it will be repaid with interest over time.
Related terms
Maturity Date: The date when the principal amount of a bond is due to be repaid.
Coupon Rate: The fixed interest rate paid on a bond, usually expressed as a percentage of its face value.
Credit Rating: An evaluation of the creditworthiness and risk associated with an issuer of bonds or other debt securities.