Stock
You own part of a company.
Investing
A bond is a loan to a government or company, and its market price can still move before maturity.
Bonds
The borrower is usually a government or company. You are the lender.
You own part of a company.
You lend money to an issuer under agreed terms.
If the issuer meets its obligations, the bondholder receives the promised payments according to the bond's terms.
If you sell a bond before maturity, the price someone will pay may be above or below its face value.
Older bonds paying lower rates can become less attractive, putting pressure on their market prices.
Older bonds paying higher rates can become more attractive, supporting their market prices.
The scheduled payments may be defined, while the price of the bond can still change before maturity.
Different issuers have different abilities to repay. Bond yields often reflect, among other things, the risk investors see in lending to that issuer.
They can provide income and different risk characteristics, but the right mix depends on the investor and the specific bonds involved.
Remember this
The repayment terms matter, but so do the issuer's credit quality, the maturity and what happens to the bond's market price before then.