Corporate Bond

A corporate bond is a debt security issued by a company. Investors buy corporate bonds for the stability and consistency of interest payments. Basically, investors are lending the company money for a certain time period. Once a bond expires or reaches maturity, payments cease, and the investor’s capital is returned, which means the loan has been paid back. Interest payments are pre-determined and rates can be fixed or variable. A corporate bond’s interest rate is determined by the company’s creditworthiness. Companies with good credit (i.e., AAA) pay less interest because of the bond’s lower interest rate. Whereas those companies with poor credit (i.e., junk status) pay a high interest rate because they are considered risky.

Another Way To Own Investment Properties

Download our guide to real estate investing Seek an Upgraded Real Estate Portfolio
Download eBook

 


Download our guide to real estate investing

Another Way To Own Investment Properties

Learn new ways to use real estate to pursue your wealth goals.

By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received.