Corporate Bond
/ˈkɔːrpərɪt bɑnd/
Definitions
- (n.) A debt security issued by a corporation to raise capital, obligating the issuer to pay interest and repay principal at maturity.
The company issued a corporate bond with a 5% annual interest rate.
Forms
- corporate bond
- corporate bonds
Related terms
See also
Commentary
Corporate bonds are distinct from government bonds and often vary in terms of security and convertibility; drafting should clarify these distinctions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.