What is a corporate bond?

A corporate bond is debt issued by a company in order for it to raise capital. An investor who buys a corporate bond is effectively lending money to the company in return for a series of interest payments, but these bonds may also actively trade on the secondary market.

What is a corporate bond maturity?

A corporate bond represents a loan agreement between the issuer and the investor. The terms of the bond require the issuer to repay the borrowed amount (i.e. principal) by a specific date (i.e. maturity). How Long Are Corporate Bond Maturities?

How long do corporate bonds last?

Corporate bonds are issued by corporations and usually mature within 1 to 30 years. The bonds usually offer a higher yield than government bonds but carry more risk. Corporate bonds can be categorized into groups, depending on the market sector the company operates in.

Are corporate bonds reliable?

Of course, in the investment world, there's always a tradeoff between risk and reward. And the reliability of corporate bonds can vary, depending on the company issuing them. What is a corporate bond?