What investments involves loaning money to the government or a corporation?

Investments that involve loaning money to the government or a corporation typically take the form of bonds. When you purchase a bond, you are essentially lending money to the issuer—in this case, either a government entity or a corporation—in exchange for periodic interest payments and the return of the bond's face value at maturity. Government bonds, such as U.S. Treasury bonds, are generally considered low-risk, while corporate bonds can vary in risk depending on the issuing company's creditworthiness. Both types of bonds are popular investment options for generating income and diversifying portfoliOS.