Today’s $$ ‘Word’: Corporate bond.

Corporate bond: Debt (aka “paper”) issued by a corporation. You’re helping them do something they couldn’t do otherwise. So, they say “thank you” by giving you interest back. Corporate bonds typically have a higher rate of return than government bonds, because there is a greater risk that a corporation will fail than a government—so they make it worth your while.

By | 2017-01-23T08:55:11+00:00 September 29th, 2014|Word of the Week|0 Comments