This paper will present the basic characteristics of bonds as well as the definition of bonds. Bonds are the basic type of long-term debt securities by which the issuer undertakes to pay fixed amounts to the buyer of the bond on a predetermined date. Numerous divisions defining certain bonds will be presented and the most important factors influencing the price of bonds, their current yield and maturity date will be analyzed. Long-term bonds traded on capital markets include long-term government, municipal and corporate bonds. For a successful valuation, it is necessary to know the basic concepts first, such as nominal value, nominal coupon rate, coupon and bond maturity. Furthermore, there will be shown the credit rating defined by the most important agencies and where Croatia is placed as well as the border that separates successful companies and countries from those that are not. The functioning of the Croatian market and the most important information that defines it as well as the classification of the international market will be shown.