Corporate bonds are debt securities issued by corporations to raise capital for various purposes, such as expanding operations, financing projects, or refinancing existing debt. Investors who purchase corporate bonds are essentially lending money to the corporation in exchange for regular interest payments (coupon payments) and the return of the principal amount (face value) when the bond matures.

Key Features of Corporate Bonds:

• Issuer: The corporation that issues the bond.
• Face Value (Par Value): The amount the bondholder will receive when the bond matures, usually $1,000 per bond.
• Coupon Rate: The interest rate that the bond issuer will pay to the bondholders, typically expressed as an annual percentage of the face value.
• Coupon Payment: The periodic interest payments made to bondholders, usually semi-annually or annually.
• Maturity Date: The date on which the bond will mature, and the issuer will repay the face value to the bondholder.
• Credit Rating: An assessment of the issuer's creditworthiness, provided by rating agencies like Moody's, S&P, and Fitch. Higher-rated bonds (investment-grade) are considered safer, while lower-rated bonds (junk bonds) carry higher risk.
• Yield: The return an investor can expect to earn if the bond is held until maturity. Yield can be affected by the bond’s price, the coupon rate, and the time remaining until maturity.