About Bonds
A bond is a debt security, similar to an IOU, where an investor loans money to an entity (corporate or government) in exchange for periodic interest payments and the return of the principal at the maturity date. Bonds are typically used to raise capital for projects or business expansion.
Benefits of Bonds
Bonds offer stable returns through fixed interest payments, making them a safer investment compared to stocks. They are also less volatile and can act as a hedge against inflation, providing a predictable income stream, especially in uncertain economic times.
