Question:

Corporate Bonds?

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What is this and provide detail information if any?

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  1. Corporate Bonds are simply the debt obligations of U.S. corporations. Instead of selling more stock to raise capital, they issue bonds for sale.


  2. Corporate bonds (also called corporates) are debt obligations, or IOUs, issued by private and public corporations. They are typically issued in multiples of $1,000 and/or $5,000. Companies use the funds they raise from selling bonds for a variety of purposes, from building facilities to purchasing equipment to expanding the business.

    When you buy a bond, you are lending money to the corporation that issued it. The corporation promises to return your money, or principal, on a specified maturity date. Until that time, it also pays you a stated rate of interest, usually semiannually. The interest payments you receive from corporate bonds are taxable. Unlike stocks, bonds do not give you an ownership interest in the issuing corporation.

    Check on the link stated below for the full details of  Corporate bonds.
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