Financial Terms Dictionary: Bonds

Bonds:

a prominent asset class in the realm of fixed-income securities, represent debt instruments through which issuers, typically governments or corporations, raise capital by borrowing funds from investors. These financial instruments embody a contractual obligation to repay the principal amount, known as the face value or par value, at the bond's maturity, in addition to periodic interest payments, commonly referred to as coupon payments, throughout the bond's tenor.