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Bonds, Corporate

Bonds, Corporate

Corporate bonds are bonds issued by companies. Companies issue corporate bonds to raise money for a variety of purposes, such as building a new plant, purchasing equipment, or growing the business.

Corporate bonds are debt obligations of the issuer—the company that issued the bond. With a bond, the company promises to return the face value of the bond, also known as principal, on a specified maturity date. Until that date, the company usually pays you a stated rate of interest, generally semiannually. A corporate bond does not give you an ownership interest in the company—unlike when you purchase the company's stock.

For more information about corporate bonds, see our Investor Bulletins on corporate bonds and high-yield corporate bonds.


The Office of Investor Education and Advocacy has provided this information as a service to investors.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions conce