Investment Bonds - What Are Investment Bonds & What kind Of Bonds Are There?

So what is a bond exactly? Well a bond is a share of a loan and is where the person buying the bond is providing money to the issuer of the bond in exchange for repayment at a set time in the future plus a set amount of interest during the period until the date of repayment arrives. There are different kinds of investment bonds, some are relatively low risk and some are high risk investment bonds. Government bonds are low risk investment bonds which the government issue when they need to raise more money over above that which it gets from taxation. Another word for UK government bonds is "guilts" and are a risk free as the government promises to repay them at a set date in the future. There are other kinds of investment bonds which are issued by others and the risk level will depend upon who is issuing the investment bond. The other kinds of bonds include foreign government bonds, corporate bonds, and local authority stocks and bonds.