Buy Corporate Bonds -

A corporate bond is essentially a loan an investor makes to a company. In exchange for this capital, the corporation agrees to pay a set rate of interest (the ) for a specific period. When the bond reaches its maturity date , the company returns the principal amount (the par value ) to the investor. 2. Why Buy Corporate Bonds?

The risk that the company goes bankrupt and cannot pay interest or principal. buy corporate bonds

Rated BB or lower. These offer higher interest to compensate for the significant risk that the company might fail to pay. B. Interest Rate Environment A corporate bond is essentially a loan an