Corporate bonds & discount notes
 

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.

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.

Corporate bond

 


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