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Bonds

also known as fixed income, are an investment you can purchase where you essentially lend money to whoever issued the bond in exchange for future income in the form of interest payments. At the end of the life of the bond, you get your original investment back. The interest payments and principal (amount of your investment) are guaranteed by the company or government that issued the bonds.

A type of long-term borrowing that state and local governments frequently use to raise money, primarily for long-lived infrastructure assets.  They obtain this money by selling bonds to investors.  In exchange, they promise to repay this money, with interest, according to specified schedules.  The interest the state has to pay investors on the bonds it issues for public interest cost on the bonds less than it otherwise would be.