Bonds are debt securities that are issued by corporations, municipalities, and governments as a way to raise funds for various purposes. When an investor purchases a bond, they are essentially lending money to the issuer in exchange for a fixed rate of interest over a set period of time. Bonds are typically issued with a face value, or principal amount, which represents the amount of money that the issuer has borrowed. The issuer then pays the bondholder periodic interest payments, which are calculated based on the bond’s coupon rate and the face value. The coupon rate is the interest rate that the issuer agrees to pay to the bondholder, and it is typically fixed for the life of the bond. When the bond reaches maturity, the issuer repays the face value of the bond to the investor. In some cases, bonds may also be callable, which means that the issuer has the right to redeem the bond before its maturity date. Bonds can be traded in the secondary market, where investors can buy and sell them at market prices. The market price of a bond