A bond is a certificate of indebtedness that specifies the obligations of borrowers to the holders of the bond. It is a tradable loan security issued by governments and companies as a means of raising capital. The bond guarantees its holder the repayment of capital at a future specified date (i.e., maturity date) and a fixed rate of interest (i.e., coupon). When the bond is held until maturity, the bond is redeemed at face value. If the bond is sold on the market (i.e., secondary market) before maturity, the price of the bond is reasonably close to its actual market value.