What Are Corporate Bonds? A Beginner’s Explanation
When friends ask me what are corporate bonds, I usually start with a scene they recognise. Imagine a company that wants to expand—open a new plant, refinance costlier debt, or fund an acquisition. Instead of taking a bank loan, it can borrow directly from investors like you and me by issuing a bond. I lend the company money today, and in return I receive periodic interest (the coupon) and...
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