A bond is a fixed income instrument, which represents a loan made to a government or corporation. Bonds are most often issued by governments as a way to borrow money, in order to fund infrastructure within their jurisdiction. Bonds traditionally pay a fixed interest rate to debtholders, which can be seen as attractive to traders who like lower risk investments. All Bonds have maturity date, this is the end date of the loan when the principal amount must be paid back in full.
