A bond is a fixed-income instrument that represents a loan made by an investor to a borrower. The borrower is usually a corporate, government, or municipality that issues a bond to finance a project or expand business.

When an entity issues a bond, it essentially borrows money and agrees to pay an interest at a fixed rate over a specific period of time. At the end of this period the issuer repays the principal amount to the investor. 

• Face Value: The nominal value of the bond that is repaid to the investor at maturity.
• Coupon Rate: The interest rate that the issuer pays to the bondholder.
• Maturity Date: The date when the principal amount is repaid to the investor.

In 2013, Apple Inc. decided to issue bonds worth $17 billion. Apple wanted to raise money to fund a share buyback and pay dividends to its shareholders.

The issuance included various maturities, ranging from 3-year to 30-year bonds, with different coupon rates. By issuing bonds, Apple was able to fund its share repurchase program. The bonds also allowed Apple to leverage historically low-interest rates to borrow cheaply.

The bond sale was a success due to the combination of Apple’s high credit rating and the prevailing low-interest-rate environment, which made the bonds an attractive investment.

In 1157, the Venetian government issued what can be considered the first government bonds to fund its military and defense operations. Investors lent money to the government and received fixed payments in return.

Some later instances of bond issuance are from the 17th century when the Dutch East India and the Bank of England issued bonds for various purposes.