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 Corporate Bonds |
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Description
Corporate Securities are debt obligations issued by private and public corporations. In general, Corporate Securities are coupon-bearing bonds that pay interest on a semiannual basis. However, some are issued as "Zero Coupon" Bonds. These bonds are purchased at a substantial discount from par, make no periodic interest payments, and mature at face value (par).
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Benefits
Enjoy a steady source of income.
Corporate Bonds offer you opportunities for diversification because they are issued by a number of companies across a variety of industries and offer varying levels of safety or risk.
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Features
Yields on Corporate Bonds are generally higher than comparable U.S. Treasury Securities due to the increase in credit risk.
Corporate Bonds can range from high quality triple-A to below investment grade (junk bonds) bonds rated BB+ or below.
If circumstances change, Corporate Bonds are actively traded with well-known names typically having the largest market. You are not locked in until the bond's maturity.
You receive semi-annual or, in some cases, monthly coupon payments. (Zero Coupon Corporate Bonds, however, make no coupon payments.)
Bond Market Association Brochures:
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Related Products/Services
Bond Ladders
Callable Bonds
Certificate of Deposit
Convertible Bonds
High Yield Bonds
Revenue Bonds
Treasury STRIPS
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