What is a Bond?

A bond is a type of debt that borrowers take from individual investors for a specified time period. It is a fixed-income security that signifies a loan given by an investor to organizations like companies, governments, municipalities and other entities. 

It helps organizations to raise funds and meet their capital requirements. You can purchase bonds from the primary markets at face value or principal. Investing in bonds gives you the legal and monetary rights to an organization's debt fund. The borrowers are liable to return back the entire face value of bonds after the term period expires.