Bonds are a type of fixed-income investment issued by the government or companies.
Investors acquire these debt securities and are remunerated at a specific interest rate (which may be fixed or variable) for a set period of time. The entity or government reimburses investors for the entire nominal value initially invested, along with additional interest, if the investment is maintained until the maturity date.
Therefore, investors, or bondholders, are creditors of the issuer. These securities are utilized by companies, municipalities, states, and sovereign governments to fund projects and operations.