Companies regularly finance their activities by issuing bonds.

Bond-issuing companies use investment banks to find investors.

Bonds are repaid at 100% when they mature, unless the borrower is insolvent.

Bondholders get their money back if the company goes bankrupt.

Bond coupons are generally lower than share dividends.

For profitable companies, there are tax advantages to issuing stocks or shares rather than bonds.

Governments systematically finance public spending by issuing bonds.

A bond paying 5% interest would lose in value if interest rates fell to 4%.