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What are corporate bonds issued for?

Updated: 9/23/2023
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10y ago

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A corporate bond is a bond issued by a corporation for the purpose of raising funds and expanding the business. These bonds are usually long-term (i.e. at least one year) and generally offer a higher yield than some other investments. Corporate bonds carry a higher risk of default than other investments such as government bonds, depending on the given corporation and the state of the market.

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Q: What are corporate bonds issued for?
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Related questions

What is the difference between treasury and corporate bonds?

Corporate bonds are issued by a company, Treasury bonds by the government


Bonds issued by corporations are called?

"Corporate Bonds" I put a linked list of Corporate Bonds below


What is corporate bonds?

A Corporate Bond is a bond issued by a corporation as a way to borrow money.


Which of these are issued by corporations and the U.S. government?

Bonds are issued by both corporations and the U.S. government. Corporate bonds are issued by companies to raise funds, while U.S. government bonds, such as Treasury bonds, are issued by the government to finance its operations and projects.


What banks provide high interest bonds to customers?

High interest bonds are not issued by banks; they are issued by corporations that do not meet the standards of an investment-grade bonds. Like stocks, they are a corporate investment.


What are the bond types from lowest to highest yield?

The different types of bonds includes Treasury bonds which are released by US government. Agency bonds which are issued by organizations registered or affiliated with US Federal government, municipal bonds which are issued by counties or cities have medium to low yield, Corporate bonds which are issued by companies, have high yields, high yield bonds which are issued by corporations.


Do mutual fund companies buy corporate equities?

Mutual fund companies are the largest institutional purchasers of corporate equities, buying approximately one-quarter of all corporate bonds that were issued


What is the meaning of high yield corporate bonds?

High yield corporate bonds are issued by organizations that do not qualify for investment-grade ratings by credit rating agencies. These bonds are sold to raise capital for various purposes. The issuer agrees to pay interest and also return the face value of the bond.


What is the order of treasury bonds junk bonds and corporate bonds from lowest to highest risk of default?

-U.S. Treasury bonds -Corporate bonds -Junk bonds


Is it safe to buy corporate bonds?

Yes, it is safe to buy corporate bonds. You can read more about it at monevator.com/2010/02/03/is-it-safe-to-invest-in-corporate-bonds/.


Is long term corporate bonds a money market or capital market?

Long-term corporate bonds are examples of capital market transactions. A capital market transaction occurs in the financial market in which stocks and intermediate, or long-term debt (one year or longer), are issued


How can one buy corporate bonds?

You can buy corporate bonds quite easily on the internet. A website that you could use to buy corporate bonds is Fidelity where they have a website set up so you can easily buy these bonds.