[header] How to calculate an interest payment on a bond [title] Learn what a bond is. [step] Purchasing a bond can be thought of as purchasing debt, or, alternatively stated, loaning money to a company. The bond itself simply represents this debt. 
Like any loaned money, a bond entitles you to receive interest payments at fixed intervals for a specific time frame, at the end of which you will receive your initial amount back.. [substeps] Corporations and governments issue bonds to raise money to fund projects, or to finance their daily operations.