Bonds are interest bearing obligations of the issuer.  They are designed to pay the bondholder interest at fixed periods, and the amount borrowed (or invested) at the end of the loan period.  Bonds have been favored by people who want a regular income since often bonds pay a fixed interest rate on a stated time schedule.

Corporations, governments and their agencies issue bonds to raise money.  When you purchase a bond, you are lending money to the bond issuer.

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