Bonds are investment loans from an investor to a borrower that are represented by bonds (typically corporate or governmental). Lender-borrower bonds are contracts that outline how a loan will be repaid (like an IOU). Bonds are used by both public and private sector entities to finance their projects and operations. Bond owners are the debt holders or creditors of the issuer.

The bond information includes the due date for repayment of the principal to the bond owner, as well as the borrower's option to pay variable or fixed interest.

When considering bonds to buy, it's essential to evaluate your risk tolerance, investment goals, and the current economic environment.

Government bonds (like U.S. Treasuries) are often seen as low-risk and are ideal for conservative investors seeking steady income. Corporate bonds offer higher yields but come with greater risk, depending on the company's credit rating. Investment-grade corporate bonds are safer, while high-yield (or junk) bonds offer higher returns but with increased default risk.

Municipal bonds are attractive for their tax benefits, especially for high-net-worth individuals. They are generally low-risk but have lower yields.

In rising interest rate environments, shorter-duration bonds are preferable to minimize interest rate risk. Diversifying across different bond types and maturities can also help balance risk and return.