Bonds are loans given to governments or corporations. They have a par value (principal/face value), a maturity date when the principal will be repaid, and a coupon rate that is the interest paid annually. Bonds are rated based on risk from AAA (safest) to D (riskiest), with higher ratings receiving lower interest rates due to lower risk. Bonds can be resold before maturity, sometimes at a discount if interest rates have changed. Bonds benefit issuers by providing guaranteed interest payments and not imparting ownership, but also legally obligate coupon and principal payments regardless of economic conditions. Main types of bonds include savings bonds, corporate bonds, municipal bonds, treasury bonds, and high yield "