Bonds are debt securities that represent loans made by investors to governments, corporations, or other entities. When you buy a bond, you are essentially lending money to the issuer in exchange for periodic interest payments and the return of the bond's face value (principal) at maturity. Key aspects of bonds include:

• Types: There are various bond types, including government bonds, corporate bonds, municipal bonds, and more. Each issuer has specific terms and purposes for issuing bonds.
• Coupon Rate: This is the fixed interest rate that the bond pays, typically expressed as a percentage of the bond's face value. Interest payments are made periodically, such as semiannually.
• Maturity Date: The date when the bond's face value is repaid to the bondholder. Bonds can have short-term (e.g., 1-5 years), medium-term (e.g., 5-10 years), or long-term (e.g., 10-30 years) maturities.
• Face Value: The amount the bond will be worth at maturity. It's also called par value or principal amount.
• Market Price: The current trading price of a bond, which can be higher or lower than its face value depending on market conditions and interest rates.
• Yield: The effective return on a bond, taking into account its current market price and interest payments. It may differ from the coupon rate.
• Ratings: Independent agencies assess and assign credit ratings to bonds, indicating the issuer's creditworthiness. Higher-rated bonds are less risky but offer lower yields.
• Liquidity: Bonds vary in terms of how easily they can be bought and sold. Government bonds are typically more liquid than corporate or municipal bonds.

Bonds provide a fixed income stream and are considered lower-risk investments compared to stocks. They are often used to diversify investment portfolios, provide income, and preserve capital. Investors should consider factors such as risk, duration, and yield when choosing bonds to match their financial goals and risk tolerance.