A corporate bond îs àn IOU issued ßy à public company, such às HLL,ITC, TELCO etc. When yôù invest în à corporate bond, yôù àré lending money tô thé company. In return yôù will receive interest àt à fixed rate & thé promise thàt yôùr capital will bé repaid àt à certain date în thé future. The guarantee thàt our capital will bé returned îs only às good às thé Comp. yôù àré lending money to. While HLL, ITC, TELCO àré considered 'good risks' ßy investment pundits because théy àré blue chip companies, ôthér smaller companies àré likely tô bé à less good risk.
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