The structure and attribution treatment of bonds was covered in some detail in Chapter 6. This chapter shows some of the other guises in which bonds appear in performance measurement.
The fundamental idea behind a bond is that it is a temporary transfer of capital from the investor to the issuer of the bond that is repaid at a given date in the future, called the maturity date. To compensate the investor for making the loan, the bond makes regular interim cash flows, called coupons, to the investor.
The details vary between issuer. For instance: