Bond (Bonds)

In finance, a bond is a type of investment that involves lending money to an entity (typically a corporation or government) for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debt holders, or creditors, of the issuer. Bonds are also referred to as fixed-income securities because the income they generate for bond holders is typically set at the time they are issued and does not change.