Investment Bonds are debt instruments in which the authorized person who is issuer owes the bondholders a debt. Depending on the terms and conditions of the type of bonds, the authorized issuer is obliged to pay interest and/or repay the principal at a later date upon maturity. Bonds are investment securities where an investor lends money to a company or a government for a set period of time, in exchange for regular interest payments. Once the bond reaches maturity, the bond issuer returns the investor's money.