A bond is a tradable loan. National governments and corporations are the important issuers of bonds. A bond, in general, represents the issuer’s contractual promise to pay interest and to repay the principal according to specified terms. Bonds are categorised as fixed income securities; investors receive an interest payment every year and at maturity repayment of the principal. Some government bonds are regarded the benchmark for mid and long term interest rates. Bonds are priced as a percentage of the principal