text: Bonds are debts of a company or a state. They pay interest rates once per year or quarter. They are less risky than stocks, as long as you buy them and hold them until they expire.\n\nHowever, bond prices fluctuate, inversely with interest rate.\n\nAlso, the company which issued the bonds can go bankrupt, after which their debt becomes worthless. State issued bonds do not have this problem. In principle a gouvernment can always increases taxes to pay-off the bonds.