What are Bonds?

Bond is a negotiable debt investment certificate that ensures fixed income for a defined period of time generally issued by a company or government agency.

A bond investor offers money to the issuer and in return, the issuer promises to repay the amount equal to bond value at a fixed interest rate (at a specified maturity date) over the life of the bond. However the interest on bonds is usually paid (semi-annually) every six months.

Bonds are generally used by companies and foreign governments to fund multiple projects as well as activities.