Corporate Bond financial definition of Corporate Bond. Corporate Bond finance term by the Free Online Dictionary.

Corporate Bond

Debt securities issued by a for-profit company instead of a government. Corporate bonds are a major way companies raise funds for their operations or for a specific project. The risk of a corporate bond for a bondholder depends on the creditworthiness of the issuing company. As with all bonds, corporate bonds have a maturity, at which time the principal is repaid to bondholders. They also usually have a stated coupon rate. Corporate bonds are taxable.

Corporate bond. Corporate bonds are debt securities issued by publicly held corporations to raise money for expansion or other business needs.

Corporate bonds typically pay a higher rate of interest than federal or municipal government bonds, but the interest you earn is generally fully taxable.

You may be able to buy corporate bonds at issue through your brokerage firm, usually at the offering price of $1,000 per bond, though you may have to buy several bonds of the same issue rather than just one.

You can buy bonds on the secondary market at their current market price, which may be higher or lower than par. However, most individual investors buy corporate bonds though a mutual fund that specializes in those issues.

Corporate Bond

What Does Corporate Bond Mean?

A debt security issued by a corporation and sold to investors. The bond is backed by the company's ability to pay interest and principal, which typically comes from money earned from future operations. In some cases, the company's physical assets may be used as collateral for bonds. Corporate bonds are considered higher risk than government bonds. As a result, interest rates are almost always higher on corporate bonds, even for top-flight credit quality companies.

Investopedia explains Corporate Bond

Corporate bonds are issued in blocks of $1,000 in par value (face value) and usually have a standard coupon payment structure. Corporate bonds also may contain call provisions to allow for early prepayment if prevailing rates change. Corporate bonds, that is, debt financing, along with equity and bank loans/lines of credit, are a major source of capital for businesses. In general, a company should exhibit consistent earnings potential to be able to offer debt securities to the public at a favorable coupon rate. The higher a company's perceived credit quality is, the easier it becomes to issue debt at lower interest rates and issue higher amounts of debt. Most corporate bonds are taxable and have maturities of more than one year. Corporate debt that matures in less than one year typically is called commercial paper.

Related Terms:
• Bond
• Debt Financing
• Municipal Bond
• Yield
• Yield to maturity—YTM

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
After-Tax Basis Bono empresarial Corporate Corporate Bond Fund Corporate Bond Short-Term Fund Corporate Bonds Corporate Equivalent Yield Equivalent Taxable Yield Intramarket Sector Spread Lehman Brothers Corporate Bond Index Lehman Brothers Government/Corporate Bond Index Municipals-over-Bonds Spread Obligacion negociable Obligation d'entreprises Serial Bonds Tax-Equivalent Income Titolo obbligazionario di societa Yield Ratio	As for good-quality or investment-grade corporate bonds, we believe performance will be driven largely by spread tightening (the "spread" being the difference between a corporate bond yield and a comparable maturity Government bond yield, which reflects the level of credit risk associated with the issuer). Bonds 'less attractive' when rates rise by The Journal (Newcastle, England) Investors who are seeking income but concerned about the volatility of investing in shares may find that corporate bond funds provide the answer. Why corporate bonds could be the answer by Birmingham Mail (England) Investors who are seeking income but concerned about the volatility of investing in shares may find that corporate bond funds provide the answer. Why corporate bonds could be the answer by Sunday Mercury (Birmingham, England)	Copropiedad Copyright Core Bank Core Capital Core Competence Core earnings core factor Core Holding Core Holdings Core Inflation Core Plus core space core-based statistical area CORENET Global Corner Corner a Market corner influence corner of Main and Main Cornering the Market Corporate Corporate Acquisition Corporate Action Corporate and Criminal Fraud Accountability Act of 2002 Corporate Anorexia Corporate Bankruptcy Corporate Bond Corporate Bond Fund Corporate Bond Short-Term Fund Corporate Bonds Corporate Cannibalism Corporate Charter Corporate Citizenship Corporate Equivalent Corporate Equivalent Yield Corporate finance Corporate Financial Management Corporate Financial Planning Corporate Financing Committee Corporate Governance Corporate Income Fund Corporate Inflation-Linked Securities Corporate Inversion Corporate Processing Float Corporate Raider Corporate Repurchase Corporate Restructuring Corporate Tax Corporate Tax View Corporate Taxable Equivalent Corporate Trust Corporate Veil	Corporate Assistance Program Corporate Association for Professional Development Corporate Association of Microcomputer Professionals Corporate Audit and Assurance Corporate Audit and Evaluation Branch Corporate Audit Services and Risk Assessment Corporate Authorized Representative Corporate authorship Corporate Avenger Corporate Average Data Efficiency Corporate Average Fuel Consumption Corporate Average Fuel Economy Corporate Awareness and Development Group Corporate Banking and Capital Markets Corporate Banking and Financial Markets Corporate Bankruptcies Corporate Bankruptcy Corporate Benefit Management Group Corporate Benefit Services of America Corporate bias Corporate bias Corporate Biodiversity Action Plan Corporate board Corporate board Corporate board Corporate Board of Directors Corporate Body Corporate Bond corporate bond fund Corporate Bond Funds Corporate Bond Linked Debt Corporate Bond Short Term Fund Corporate Bond Short Term Funds Corporate Bond Short-Term Fund Corporate Bond Short-Term Funds Corporate bonds Corporate bonds Corporate Brand Services Corporate Business Applications Support Corporate Business Council Corporate Business Development Corporate Business Group Corporate Business Process Management System Corporate Business Server Corporate Business Tax Act Corporate Cannibalism Corporate Cannibalism Corporate Case Management Corporate Catalyst India Corporate Center Corporate Chaplains of America Corporate charter Corporate charter Corporate charter Corporate charter Corporate Charters Corporate Charters Corporate Charters

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After-Tax Basis
Bono empresarial
Corporate
Corporate Bond Fund
Corporate Bond Short-Term Fund
Corporate Bonds
Corporate Equivalent Yield
Equivalent Taxable Yield
Intramarket Sector Spread
Lehman Brothers Corporate Bond Index
Lehman Brothers Government/Corporate Bond Index
Municipals-over-Bonds Spread
Obligacion negociable
Obligation d'entreprises
Serial Bonds
Tax-Equivalent Income
Titolo obbligazionario di societa
Yield Ratio

As for good-quality or investment-grade corporate bonds, we believe performance will be driven largely by spread tightening (the "spread" being the difference between a corporate bond yield and a comparable maturity Government bond yield, which reflects the level of credit risk associated with the issuer).

Bonds 'less attractive' when rates rise by The Journal (Newcastle, England)

Investors who are seeking income but concerned about the volatility of investing in shares may find that corporate bond funds provide the answer.

Why corporate bonds could be the answer by Birmingham Mail (England)

Investors who are seeking income but concerned about the volatility of investing in shares may find that corporate bond funds provide the answer.

Why corporate bonds could be the answer by Sunday Mercury (Birmingham, England)