Bonds Beginner's Guides

DIY investor insights: the nuts and bolts of bonds

When you invest in a bond, you are lending money to the bond issuer, generally for a specified time period. In return, the issuer is legally obliged to pay interest, or coupon, at a pre-agreed rate and to repay the original amount borrowed, principal, face value, nominal value, or par value on the repayment date (maturity).