About Corporate Bonds

Corporate Bonds are issued by both public and private corporations and large organizations. Corporate Bonds are one of the more popular ways for a company to raise working capital for business expansion needs. There are two primary types of corproate bonds which are secured Corporate Bonds and unsecured Corporate Bonds.

In addition to Corporate Bonds‘ fixed rate interest payments, Corporate Bonds frequently offer higher yields than Treasury and other government backed securities.

What is a corporate bond?

A corporate bond represents an obligation of a company (the issuer) to pay the corporate bond holders periodic interest, typically at a fixed rate (the coupon), and to repay the amount of the loan (the principal) at a specified time in the future (the maturity date).

Like government securities, most Corporate Bonds have a par value of $1,000, pay interest semi-annually, and are available in a wide range of short-, intermediate- and long term maturity structures. See Corporate Bond List for a list of different types of Corporate Bonds. You can compare the corporat bond list to a list of Different Bond Types to see if there are other bonds that might be more suitable for your portfolio.

Corporate bond

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