What is a bond?
The Bank issues bonds to raise funds from the public for a specific period. You, as well, may become an investor and obtain interest by purchasing bonds on a regular basis. At the end of the term, you will get the amount of your investment (face value of bonds) back.
The Bank issues bonds to raise funds from the public for a specific period of time. We pay interest to bondholders in a form of coupons on a regular basis. The face value of bonds is paid at maturity.