Bond Fundamentals
A bond is a loan to the issuer: par (face) value — normally $1,000 — is repaid at maturity, and the coupon (nominal yield) is the fixed annual interest as a percentage of par, usually paid semiannually.
Term bonds mature all at once; serial bonds mature in installments (common for municipals); zero-coupon bonds pay no interest but are bought at a deep discount and mature at par. The indenture is the contract spelling out the issuer’s obligations to bondholders.