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What is the basic idea behind bonds in finance?

I’m struggling to understand the basics of financial bonds and can’t find a really basic explanation anywhere.

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3 Responses to “What is the basic idea behind bonds in finance?”

  1. ernesthinton said :

    Your Accounting GURU Here!!!

    Corporate Bonds are Long term debt instruments: They are used to raise capital (cash) to expand a business.

  2. never_say_never said :

    The basic idea is that a company that doesn’t have enough cash to do what it wants to do issues bonds to generate cash. The people who buy bonds receive a percentage return on the amount of cash they have provided and after a set period, the person who bought the bond gets their money back.

    Wikipedia has a decent explanation.

  3. Pamelia Heartz said :

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