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Bonds issued by corporations are called corporate bonds. These are debt securities that corporations issue to raise capital for various purposes, such as funding operations, expanding business activities, or refinancing existing debt. When an investor purchases a corporate bond, they are essentially lending money to the issuing corporation. In return, the corporation promises to pay periodic interest, known as the coupon payment, and repay the principal amount at the bond's maturity date.

Corporate bonds are typically categorized based on their credit quality. Investment-grade bonds are issued by companies with strong credit ratings and are considered less risky. High-yield or "junk" bonds are issued by companies with lower credit ratings, offering higher interest rates to compensate for the increased risk of default.

These bonds come in different types, such as secured bonds, which are backed by specific assets, and unsecured bonds (debentures), which rely solely on the corporation's creditworthiness. Convertible bonds allow investors to convert the bond into company stock, offering potential equity upside.

Corporate bonds(888.951.8680) are a vital part of the financial markets, providing companies with a flexible financing option and investors with opportunities for income generation and portfolio diversification. However, they carry risks, including credit, interest rate, and market risks.

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timscottseo

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Related Questions

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 are issued by corporations and the us government?

bonds


Which of these are issued by corporations and us government?

bonds


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 three types of securities issued by a corporations?

common stock, preferred stock, and bonds


What are the 3 main types of bonds?

The three main types of bonds are government bonds, corporate bonds, and municipal bonds. Government bonds are issued by a government entity, corporate bonds are issued by corporations to raise funds, and municipal bonds are issued by local government entities.


What is jumbo bonds?

Jumbo bonds are bonds that are issued in larger denominations than traditional bonds, typically $1 billion or more. They are usually issued by corporations or governments to fund large projects or meet significant financing needs. Jumbo bonds may offer higher yields to investors due to their larger size and potential risk profile.


What is a callable bond?

Most bonds issued today are "callable," which means corporations can recall them if interest rates rise before the maturity dates.


How would you define debenture bonds?

Corporations with sound credit standing are able to issue bonds without pledging assets. Such bonds are called debenture bonds, or unsecured bonds.


What is deposits called?

A Call Deposit Receipt is a certificate issued to government institutions and corporations as a type of security deposit. The institution or corporations it is issued to can redeem it at any time for legal tender from the issuers account.


What are types of bonds?

Basically there are two types of chemical bonding- Ionic bonding and covalent bonding, their sub classes include coordinate covalent bonding , metallic bonding and secondary type of bonding includes Hydrogen bonding , Vander waal's bonding, Dipole-Dipole interaction and London's dispersion effect.


What are the companies offering zero coupon bonds?

Zero coupon bonds are typically issued by governments, municipalities, and corporations. Prominent companies that offer zero coupon bonds include major corporations like Disney and Coca-Cola, which have issued them in the past. Additionally, U.S. Treasury securities, such as Treasury bills, can function as zero coupon bonds. Investment firms and mutual funds may also provide access to zero coupon bond investments through specific funds or portfolios.