Bonds are fixed-income securities issued by government bodies or private institutions to raise funds through the debt market. Investors earn returns on their investments during a pre-decided tenure.

Generally, they carry lower risk than stocks but depend on the issuing company's credit rating and other factors, such as the company's financial health.

There are various types of bonds, including government bonds, corporate bonds, municipal bonds, and zero-coupon bonds. Each type has its own risk and return profile.

Bonds generate income through interest payments, also known as coupon payments, which are made periodically to bondholders.