A bond is really just a loan. When you buy a bond, you're lending money to the government or company that issued it. They'll give you regular interest payments in return for the loan of the money, and the issuer should pay you back the original amount at the end of the term, which is known as the maturity date. Like most investments, there is always a chance that you won't be repaid your original investment, but bonds are still a lower risk way to invest when compared to equities or company shares.