Corporate Bonds
A corporate bond is an IOU issued by a public company, such as HLL,ITC, TELCO etc. When you invest in a corporate bond, you are lending money to the company. In return you will receive interest at a fixed rate & the promise that your capital will be repaid at a certain date in the future. The guarantee that our capital will be returned is only as good as the Comp. you are lending money to. While HLL, ITC, TELCO are considered 'good risks' by investment pundits because they are blue chip companies, other smaller companies are likely to be a less good risk. |
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