In personal finance, a government-issued debt security with a fixed maturity and interest payments is called a bond.
When an investor buys a bond, the investor is lending money to the issuer. The issuer promises payments according to the bond’s terms and generally returns the face value at maturity, subject to credit and other risks. Governments, municipalities, and companies can issue bonds.
Many bonds pay periodic coupon interest, although some are issued at a discount and pay no regular coupon. A bond’s market price can change before maturity when interest rates, credit conditions, inflation expectations, or market demand change.
A bond is not the same as a stock. Stock represents an ownership interest, while a bond represents a debt claim against the issuer.