What is the ruling on purchasing bonds—such as U.S. Treasury bonds—whose price and guaranteed returns fluctuate, knowing that their returns decrease with an increase in bank interest rates?

A bond is a document that includes a pledge from a bank or company to its holder to repay a specific amount on a specific date in exchange for interest. It is a loan with interest and represents a debt owed by the company, and its holder is entitled to annual interest whether the company makes a profit or a loss. This type of transaction is usurious, and therefore, issuing and trading these bonds through buying and selling is not permissible in Islamic law.