Actually, there are different types of bonds. Several different types are explained below. Investopedia.com has included some short videos to aid in defining these bonds.
A government bond is a debt security a government issues. This video gives a short explanation of government bonds.
U.S. savings bonds are explained here: U.S. savings bonds
Municipal bonds (munis) are debt obligations issued by government entities.
U.S. Treasury Bond
- S. Treasury Bond: obligations that have a maturity date from 10 to 30 years in length.
U.S. Treasury Bill
U.S. Treasury Bill: obligations that have a shorter maturity date, e.g. months instead of years.
Why does the “yield” of a bond go “up” when the “price” of a bond goes “down?” Investopedia.com gives us an explanation and example:
BREAKING DOWN ‘Bond Yield’
The yield of a bond is inverse to its price: as bond prices increase, bond yields fall. For example, assume that an investor purchases a bond with a 10% annual coupon and a par value of $1,000. The yield on this bond would be its par value divided by the interest it pays. The interest would be $100 (10% of $1000), making its yield $100/$1000 = 10%. If the bond price were to fall to $900, the yield would become $100/$900 = 11.1%. The investor will still receive the same amount of interest, since the interest is based on the bond’s par value, but would have a higher yield because the bond price fell.
Investors may see bond yields fall when economic conditions push markets toward “safer” investments. Economic conditions that might decrease bond yields include high rates of unemployment and slow economic growth (or recession).
Read more: Bond Yield Definition | Investopedia http://www.investopedia.com/terms/b/bond-yield.asp#ixzz4DwKcXvDo