the ins and outs of investing in corporate bonds



"Corporate bonds are an investment instrument that pays higher rates than government (or municipal) bonds due to the increased risk of loss to bondholders. They have a wide range of conditions because the financial health of the issuers can vary greatly. Each company is different and has a different likelihood of defaulting on their obligations; however, they all use bonds for one reason: to raise money. What Are Corporate Bonds? When a corporation wants to raise money for some type of investment or expenditure, they have three basic choices."

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