Government bonds are debt securities issued by governments to raise money. They are a type of fixed-income investment, meaning that they pay a fixed interest rate over a specified period of time. When you buy a government bond, you are essentially lending money to the government. In return, the government promises to pay you back the principal (the amount you invested) plus interest over the life of the bond.
Government bonds are considered to be a relatively safe investment, as they are backed by the full faith and credit of the government that issued them. As such, they are often used by investors seeking to preserve capital and generate a steady stream of income. However, it is important to note that government bonds are not without risk. The value of a government bond can fluctuate depending on a number of factors, including interest rates, inflation, and the perceived creditworthiness of the issuing government.
