A bond, also known as a fixed-income security, is a debt instrument created for the purpose of raising capital. They are essentially loan agreements between the bond issuer and an investor, in which the bond issuer is obligated to pay a specified amount of money at specified future dates.
Treasury Bonds can have maturities of 10 years or longer. Treasury Bonds carry the lowest degree of risk and are the benchmark against which all other types of Bonds are measured. Although their market Value fluctuates , they are considered to be the safest Bonds due to the fact that they are secured by the full Faith and Credit of the issuing Government. The value of these Treasury Bonds depend on the issuing Country its development and creditworthiness Internationally.
A Municipal Bond , is a Debt Obligation issued by a State , City or local Government to finance Governmental needs or specific projects.