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Nicaragua, officially the Republic of Nicaragua (Spanish: República de Nicaragua), is a representative democratic republic and the largest nation in Central America. The name 'Nicaragua' seems to have meant 'surrounded by water' in an older, indigenous language that mixed with Spanish. This could be either because of the two large freshwater lakes, Nicaragua and Managua, or because the nation is bounded on the east and the west by oceans. Nicaragua is also the least densely populated with a demographic similar in size to its smaller neighbours. The country is bordered by Honduras to the north and by Costa Rica to the south. The Pacific Ocean lies to the west of the country, while the Caribbean Sea lies to the east. Falling within the tropics, Nicaragua sits 11 degrees north of the Equator, in the Northern Hemisphere.

In 1502, Christopher Columbus was the first European known to have reached what is now Nicaragua as he sailed south along the Central America isthmus. On his fourth voyage Columbus sailed alongside and explored the Mosquito Coast on the east of Nicaragua. The first attempt to conquer what is now known as Nicaragua was by Gil González Dávila, whose Central American exploits began with his arrival in Panama in January 1520. González claimed to have converted some 30,000 indigenous peoples and discovered a possible transisthmian water link. After exploring and gathering gold in the fertile western valleys González was attacked by the indigenous people, some of whom were commanded by Nicarao and an estimated 3,000 led by chief Diriangén. González later returned to Panama where governor Pedrarias Dávila attempted to arrest him and confiscate his treasure, some 90,000 pesos of gold. This resulted in González fleeing to Santo Domingo.