Bonds, Interest Rates & Exchange Rates
What is a bond? Please explain simply.
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A bond is a debt security issued by a government, local government, company or other entity when it borrows money, promising when and how it will repay the principal and interest.
An investor who buys a bond becomes a creditor who has lent money to the issuer, receiving interest (coupons) at set times and getting the principal back at maturity. Bonds can also be bought and sold in the market before maturity, so their prices can change every day.
This answer is general financial information as of 14.10.2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.
