What are bonds
A bond is a debt security stating the fact that a debt has been incurred by the issuer of the bond to its purchaser, known as the bondholder.
This debt is repaid on strictly defined dates together with interest. The method of calculation of the debt is set out in the terms and conditions of the bond issue. The purchaser of the bond is not a joint owner of part of the issuer's assets. The bond is not shareholding in nature.
