Corporate Bonds

CORPORATE BOND

A Corporate Bond is a bond issued by company/ an enterprise “A borrower” to investors “Lenders” from the general public. When a company issues a bond it divides it into small proportions that are sold at a price called the face value. The Company will promise investors payment of some interests on the borrowed amount; interests will be paid annually or semiannually. Investors are also promised repayment of the borrowed amount after the bond matures.