corporate bond

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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

see BOND.
References in periodicals archive ?
However, varieties of notes already in the market, such as municipal revenue notes and bonds as well as corporate notes and bonds, share many of the same characteristics as capital notes.
An agreement for seven-year, fixed-rate corporate notes worth P6.
In the currency loans the quotes reduction was on the corporate notes and the sovereign issues by the end of the daytime session remained at the former level.
The yield on three-year 'AAA' corporate notes has declined to 9.
government and agency securities, investment grade corporate notes, and dedicated revolving credit agreements are considered in assigning the 'F1+' rating.
3 billion of rupee-denominated government and corporate notes this year, bolstering holdings to an all-time high of $21.
The combined portfolio consists of high quality short-term securities such as certificates of deposit, commercial paper, corporate notes and time deposits.
Prior to First Southwest, Mona spent eight years at Advisors Asset Management (AAM) as the head CD and corporate notes trader and fixed income consultant to AAM advisors and their clients.
In corporate notes no single dynamics was indicated and totally the activity was not high - that was the pressure in the eyes of the exaggerating primal market.
Corporate notes and bonds will typically accrue interest at fixed rates and have stated maturities at origination that range from 5 to 10 years.
Agency securities, corporate notes, CDs, mortgage-backed securities, municipal bonds, market-linked notes, annuities as well as the sponsorship of Unit Investment Trusts.
Among the corporate notes the following were the most liquid during the day: FNC-10, AIZK-17, RZD-15, Severstal MB-1.

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