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A corporate bond provides companies with cash and investors with income - here's how to evaluate the risks and rewards

28 days ago   |   By Business Insider

Summary List Placement Just like people, businesses often need to borrow money - to finance new ventures, pay off old debts, or even to buy another firm. One method at their disposal is to issue bonds.
A corporate bond, like any bond, is basically a type of debt. The purchaser of a corporate bond effectively lends cash to the issuing company. In exchange, the company becomes obligated to pay interest on this principal sum and to return it in full after a set period, when the bond matures.
For investors, corporate bonds offer a source of income - one that's more reliable than stock...
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