bond issues

A bond issue is when a government or company borrows money from investors by selling bonds, which are like IOUs. Investors buy these bonds, lending their money in exchange for regular interest payments and the promise to get their principal back at the end of a set period. Bonds are used to raise funds for projects or operations without giving up ownership. They are considered relatively stable investments and are traded in financial markets. The issuer’s ability to repay is backed by its financial strength, and bonds vary in risk and return depending on the issuer’s creditworthiness.