A bond is a financial instrument representing a debt issued by an entity, whether a company or a government.
When purchasing a bond, the buyer lends their money in exchange for receiving periodic interest payments over a specified period.
Upon maturity, the initial invested amount is returned. Bonds are an investment vehicle offering predictable and secure returns, as interest payments are fixed.
They are used by both individual and institutional investors to diversify their portfolio and generate additional income through the generated interest.
