Corporate Bond

Debt (a.k.a. “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. (See also: Bond)

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2017-12-12T19:56:24+00:00

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