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.