Corporate Bond

REMARKS

Corporate bonds represent debt of corporations. The bonds are fully taxable, and they are issued in maturities ranging from less than one year to about 30 years (although there are a few corporate bonds that mature in more than 30 years).

They typically pay interest twice a year. Corporate bonds can be quite safe when they are issued by strong companies, or they can have significant risk of default when issued by weak companies.

Two rating agencies, Moody's and Standard & Poors rate bonds as to the risk of default. Please see the BondFinder section on safety for a complete discussion on ratings and default risk.