Bond

A bond is a financial agreement where an investor loans money to a government, corporation, or organization for a fixed period. In return, the issuer promises to pay the investor interest regularly and return the full amount (principal) at the end of the term. Bonds are a way for entities to raise funds, and for investors, they offer a source of steady income with generally lower risk compared to stocks. The bond's value can fluctuate based on interest rates and creditworthiness of the issuer, but they are typically considered a safer investment than stocks.