Bonds are fixed income instruments which give you a fixed stream of interest payments (known as coupon) and a guaranteed repayment of principal at the maturity. These are issued by various entities including Central Government, state governments, and corporates.
The bonds offered by Central Government are the safest bonds in India and hence have the lowest interest rate or the coupons.
A lot of corporates also issue their bonds to the investors and the coupons are decided by 2 factors:
