corporate bond fund

corporate bond fund

An investment company that invests in long-term corporate bonds and passes the income from these securities to its stockholders. Although these funds vary in value with changes in long-term interest rates, they usually provide a current return in excess of money market funds. Corporate bond funds are of interest primarily to investors seeking high current income or to those betting on a substantial fall in long-term interest rates.

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corporate bond fund

A mutual fund consisting only of corporate bonds. A common stock fund may be high-risk if it invests primarily in junk bonds, or it may be low-risk if it invests in established investment-grade bonds.