What Is A Corporate Bond?
Investing in business
A corporate bond is a loan of capital made by and investor to a company or corporation. In return for this loan, which is usually for a fixed period of time, the investor expects to receive a payment of interest and capital back once the loan period is over.
What risks are involved in a corporate bond?
There are some risks involved when you invest in corporate bonds. For example, if the company should go bust you may lose your interest payments and even your initial investment of capital. Some corporate bonds will be more risky than other and may offer potentially high rates of return to compensate for this.
For further information visit the corporate bonds explained page. Alternatively, you may wish to speak to an investment advisor for independent advice on finding the right investment option for your needs:
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