Bonds are a type of financial investment in which money is loaned to an institution for a set period of time. Depending on the type of institution you are lending to, they usually come in two varieties: corporate bonds and government bonds.

From the start, the bond will include information about its interest rate (known as the coupon). Bonds pay only one profit because your initial investment is returned to you after the bond's term expires (called the maturity date).

Bond values are set at par, which is typically $100 or $1,000. This is the face value, or the amount that the initial investment will be worth when the bond matures.

Bonds are financial instruments representing a loan made by an investor to a borrower, typically a government or corporation. When an investor purchases 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 at maturity.

Bonds have fixed interest rates, known as coupon rates, which determine the amount of interest paid to the bondholder. These payments are typically made semi-annually. The face value, or par value, of the bond is the amount the issuer agrees to repay the bondholder at maturity.

Bonds are generally considered less risky than stocks, offering a more predictable income stream and return of principal. They are classified based on issuer type (government, corporate, municipal), maturity (short-term, long-term), and credit quality (investment-grade, high-yield).

Investors often use bonds to diversify their investment portfolios, manage risk, and generate income. Additionally, bonds play a crucial role in financing government expenditures, corporate projects, and infrastructure development.