Corporate bonds are fixed-income securities issued by companies to raise capital for various purposes, such as expansion or refinancing debt. By purchasing a corporate bond, investors lend money to the company in exchange for periodic interest payments and the return of the bond face value upon maturity. Corporate bonds offer an attractive investment option for those looking to earn steady income while balancing risk and return.
A corporate bond is a debt instrument issued by a corporation to borrow funds from investors. These bonds typically offer a fixed interest rate, known as the coupon rate, which is paid at regular intervals until maturity. Corporate bonds are categorized based on their credit quality, with higher-rated bonds offering lower yields and lower-rated bonds providing higher returns to compensate for increased risk. They serve as a viable alternative for investors seeking income through interest payments.