What is a corporate bond?

A corporate bond is a type of bond that represents an agreement between a corporation and an investor. The investor provides the corporation with money in exchange for a debt instrument, known as a bond, that promises to pay the investor a certain amount of money over a period of time. The bond generally pays interest to the investor on a regular basis, usually in the form of coupon payments. At the end of the bond’s term, the investor will get back the full amount of money they invested, plus any interest payments collected. Corporate bonds are typically issued by large, established companies to raise money for their operations. They are an attractive option for investors, because the bonds can usually be sold before they mature, allowing the investor to make a profit or to take a loss. Corporate bonds are also seen as less risky than stocks, and are therefore seen as a safer option for investors.

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What is a corporate bond?

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