A government bond is a loan issued by a national government to raise money. When investors buy a government bond, they are lending money to the government for a fixed period of time in exchange for regular interest payments and the return of the principal at maturity. 

Government bonds are generally considered low risk investments compared to corporate bonds or stocks.

Governments issue bonds to finance public spending, such as infrastructure, healthcare, or to manage budget deficits. Each bond has a face value, a fixed or variable interest rate, and a maturity date. The interest, often called the coupon, is paid periodically to the investor. The risk level of a government bond depends on the financial strength and creditworthiness of the issuing country. Bonds issued by stable economies are usually seen as safe, while bonds from countries with high debt or political instability may carry higher risk and offer higher yields. Bond prices can fluctuate before maturity due to changes in interest rates. When market interest rates rise, existing bond prices typically fall, and when rates decline, bond prices usually rise.

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