Review:
Corporate Bond
overall review score: 4.2
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score is between 0 and 5
A corporate bond is a debt security issued by a corporation to raise capital, typically with a fixed interest rate and maturity date.
Key Features
- Interest payments
- Maturity date
- Credit rating
- Issuer risk
Pros
- Can provide higher returns compared to government bonds
- Diversify investment portfolio
Cons
- Risk of default if the issuing corporation goes bankrupt
- Interest rate risk