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Corporate Bond

Corporate Bond is a type of debt security, a bond issued by a corporation. Corporate bonds are usually carrying higher risk than government bonds, and therefore pays higher rates.
These kind of bonds are long term debt instruments, with fixed and minimum 12 months maturity.
The bondholder receives yield (interest), and the principal (usually $1000) is paid on fixed maturity date.
Corporate bonds are listed on major exchanges and the interest payment is taxable.

Related Terms:

Embedded Option
Lehman Aggregate Bond Index

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