Investment Bonds Dec 26, 1998. I mentioned in an earlier article that I would discuss bonds because they are a bit confusing to the average investor. And that's why some people stay away from them.
Bonds are debt instruments.
In essence you are lending your money to the issuer for a stated time period in return for a stated interest rate. One of the common misconceptions about bonds is that they must be held until maturity. In fact, they may be sold before maturity, and frequently are. The safest bonds are U.S. Government Bonds. They are backed by the full faith and credit of the government.