Corporate Bond

A corporate bond is a bond issued by a company to an investor which lends the company money. Corporate bonds provide private enterprises with a vehicle through which they can borrow money directly from private investors as an alternative to borrowing money from merchant banks.

Typically, corporate bonds pay out interest to investors throughout the bond term in the form of coupons which can be redeemed on an annual basis. However, companies may also issue accrual bonds.

More on this topic:
Swiss onine securities broker comparison

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