Bonds

Bonds are Fixed Income securities issued by a wide range of legal entities. Bonds are traded and are not riskless investments. They are repaid at Face Value at maturity.

A Bond is a debt instrument, a Fixed Income Security, which represents a debt offered to investors with an obligation to repay by the issuing entity. A bond is a security which is issued as an obligation to repay at maturity (an IOU). Maturity is on a specified date and can be many years after issuance, and the Bond is repaid at the Face Value. Bonds will typically offer regular, scheduled income payments or coupon payments at a specified yield. There are Zero Coupon Bonds which are issued at a discount to Face Value but are repaid at the Face value. The difference between the two represents a theoretical yield.