A bond is a long-term debt instrument issued by a government or state enterprise. The issuer will repay the face value of the bond to the investor when it reaches maturity. During the term of the bond, the issuer will periodically pay interest to the investor.
The investor can forecast the total return of a debenture according to different investment conditions in order to invest appropriately.
A bond is the least risky type of investment because the issuer is a government or state enterprise.