corporate bond

(redirected from Corporate Note)
Also found in: Dictionary, Thesaurus.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

corporate bond

see BOND.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
According to this analysis, corporate notes seemed least subject to various nondefault risks.
Corporate Note 2 is for Two-years with 15% interest paid annually and secured with convertible preferred shares of the company.
"The company intends to use the net proceeds of the offer to prepay the outstanding peso-denominated floating rate corporate notes drawn on April 4, 2012," SLTC told the Commission.
VLL is selling 10-year corporate notes at a fixed rate of 6.1879 percent a year, the company disclosed to the Philippine Stock Exchange yesterday.
DoubleDragon Properties Corporation has secured P5 billion in fresh funds from the issuance of 7-year corporate notes at fixed interest rates to finance its mall expansion.
Reacting to the audit observations, Quedancor management said that the governing board has devised a plan on n the infusion of P1 billion trust fund and the restructuring of the P2.4 billion Multi-series bond and corporate notes with creditor banks.
If ALI chooses to tap the bond market, it still has leeway to raise P25 billion using its bond shelf registration but the company is evaluating other financing sources such as issuance of corporate notes, said ALI deputy CFO Augusto Bengzon.
Quotes of the corporate notes added by the end of the day 1a2 p.p.
(ACR) of the Alcantara Group will be tapping the capital market for P7.5- billion fixed rate corporate notes issuance - proceeds of which shall be used to pay its existing debts and bankroll ongoing power investments.
In the case of corporate notes, this is likewise an option to raise funds by issuing debt paper to no more than 19 institutional investors.
7 April 2010 - Philippine Rating Services (PhilRatings) said it raised the rating on the outstanding PHP5bn (USD111.6m/EUR83.3m) corporate notes of conglomerate First Philippine Holdings Corp's (PSE:FPH), or FPHC.
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.

Full browser ?