A bond is a type of debt security that obligates the issuer to repay borrowed money with interest at specified intervals. Bonds are typically issued by governments, corporations, and other entities to borrow money and finance their business activities. Bondholders are promised a fixed return on their investment, which may be higher than other forms of investment. Bond investing carries risk, as the bond issuer may default or face other financial difficulties, reducing the value of the bondholders’ investment.