Individual bonds refer to fixed income securities that are issued by corporations or government entities and are purchased by individual investors. These bonds are similar to other types of debt instruments, such as treasury bills or municipal bonds, in that they pay periodic interest and return the principal amount at maturity. However, unlike these other securities, individual bonds are not sold in large blocks through brokers or dealers but rather are purchased directly from the issuer by an investor. This means that individual bondholders do not have to worry about a secondary market for their bonds and can hold them until maturity without having to sell them on the open market. Additionally, because they are sold directly to individuals, the interest rates on these bonds may be higher than those offered by other types of debt instruments.