What are bonds in finance?

Bonds are often mentioned as safer investments. What are bonds in finance, how do they work, and how do investors earn returns from them?
 
Bonds are loans investors give to governments or companies in exchange for regular interest and repayment later.
 
In finance, bonds are loans you give to a government or company. In return, they pay you regular interest and repay the original amount when the bond matures.
 
Think of bonds like lending money with a promise. You get paid interest regularly, which is why many people use them for steady income.
 
Connection to Finance Bonds are fixed-income securities, where investors provide funds to governments or businesses in form of lending in return of periodic interest payments and repayment of the sum at maturity.
 
Bonds in finance are essentially debt instruments, where an investor provides a loan to a government or a company for a specified period, in return for regular interest payments and the repayment of the principal amount at maturity.
 
Bonds are instruments of debt whereby investors give lending money to governments or companies in the form of periodic interest payments and repayment at a maturity date.
 
Bonds are fixed-income investments where you lend money to a government or company in exchange for regular interest payments and the return of the original amount at maturity.
 
Bonds are debt instruments where investors lend money to governments or companies in exchange for regular interest payments and repayment of the principal at maturity. They are commonly used for funding and investment income.
 
In finance, bonds are debt instruments where investors lend money to governments or companies in exchange for regular interest payments and repayment of principal at maturity. They’re typically lower risk than stocks and provide predictable income, with returns influenced by interest rates, credit quality, and duration.
 
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