Bonds are pieces of debt sold to you at face value that yield a certain interest percent that is paid at maturity which is added to the principal value. Bonds are usually seen as safe investments because you can buy them based on their rating of credit worthiness, or you can buy treasury bills which i went into detail about a post 2 weeks ago. Buying T-bill is usually the safest investment because it is backed by the full faith and credit of the U.S government which has a triple AAA security rating. Bonds can also be bought for companies like General Electric or any other company but these carry some risk albeit a higher yield.
