Bond/debenture is a kind of financial contract, which is a debt certificate issued to investors when the government, financial institutions and industrial and commercial enterprises directly borrow money from the society and promise to pay interest at a certain interest rate and repay the principal according to the agreed terms. The essence of a bond is a certificate of debt, which has legal effect. There is a creditor-debtor relationship between bond buyers or investors and issuers. Bond issuers are debtors and investors (bond buyers) are creditors.
Bond is a valuable security. Because the interest of bonds is usually determined in advance, bonds are a kind of fixed-interest securities. In countries and regions with developed financial markets, bonds can be listed and circulated. In China, the typical government bonds are short-term treasury bills.
Government bonds are bonds issued by the government to raise funds. It mainly includes national debt and local government bonds, the most important of which is national debt. National debt is also called "Phnom Penh bond" because of its good reputation, excellent interest rate and low risk.
In addition to bonds directly issued by government departments, some countries classify government-guaranteed bonds as government bond systems, which are called government-guaranteed bonds. This kind of bond is issued by some companies or financial institutions directly related to the government and guaranteed by the government.
References:
Baidu encyclopedia-bonds