Corporate bond

A corporate bond is a debt security issued by a company to borrow money from investors. Its terms specify interest payments, maturity, repayment, and other rights.

Coupon (bond): A bond’s stated interest payment, usually expressed as a percentage of its face value. The coupon sets the scheduled interest payments the issuer owes bondholders.
Debt security: A tradable financial instrument representing a borrower’s obligation to repay principal, often with interest. A corporate bond is one kind of tradable debt claim.
Corporate finance: The management of a company’s funding, investment, and financial decisions. Bond issuance is one way corporate finance secures long-term funding.
Common stock: An ownership security that typically gives shareholders voting rights and a residual claim on a company’s assets. Unlike shareholders, corporate bondholders are creditors with contractual payment claims.
Credit rating: An assessment of a borrower’s or debt instrument’s creditworthiness and likelihood of meeting obligations. Ratings help classify corporate bonds by assessed credit risk.
Maturity date: The date on which a debt security’s principal is due for repayment. At maturity, the company generally repays the bond’s principal.
Bond (finance): A debt instrument in which an issuer borrows money under specified payment and repayment terms. Corporate bonds belong to the broader family of bonds issued by governments and other entities.
Capital expenditure: Spending by an organization to acquire or improve long-lived assets. Companies may use bond proceeds to finance facilities, equipment, or infrastructure.
Government bond: A debt security issued by a national government to finance public spending or manage public debt. Government bonds provide a familiar comparison for corporate yields and credit risk.
Default (finance): A failure to meet a financial obligation when it is due or otherwise required. Missed payments or other breaches can trigger default under a bond’s terms.

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