Corporate Bonds

What are “corporate bonds”?

Corporations may issue bonds to raise capital to fund projects (instead of issuing new stock). The bonds are usually denominated in amounts of $1,000 and $5,000 with interest normally paid semi-annually. Corporate bonds come in several forms, depending on the maturity: short-term (less than five years), intermediate-term (five to twelve years), and long-term (over twelve years).


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