I really don’t understand and it’s getting embarrassing
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A bond is a unit of debt that is issued by an investment bank or a government entity to borrow from the public sector. Your city can issue bonds to build a hospital or a park. A company can issue bonds to expand or improve their business. The federal government borrows all the time to pay for expenditures in excess of their revenues, this is what is known as “the defect”. Investment banks rate the credit or expected ability to repay of various borrowers and this is how their borrowing rates are determined. You may purchase a bond usually for a par (issue price) if $1,000 and receive regular interest payments. So let’s say you buy a 10 year bond at 4%, you may expect to get paid $20 twice a year for 10 years and then your original investment ($1,000) will be refunded. You can often sell the bond as well for a loss or gain depending on a number of factors that I won’t touch on here. I hope this helps.
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