Corporate bonds
Issued by corporations, these bonds offer you fixed-income payments.
When you invest in a corporate bond, you're loaning to a corporation. The corporation then regularly pays interest on the value of the bonds you purchased.
At a stated date in the future (maturity date), the company returns the principal amount you purchased. The maturity date on corporate bonds can range from one to 31 years.
Corporate bonds offer the following features:
- Income – You earn a fixed rate of interest, usually paid twice a year.
- Call protection – Most corporate bonds offer you some type of protection from early payoffs by the corporation.
- Liquidity – You can sell corporate bonds at their market value at any time before the maturity date.
- Price changes – While the amount of your interest will almost always remain the same, the value of your bond will change daily with fluctuations in interest rates as well as company specific news.
- Minimum purchase – Typically you can purchase corporate bonds in multiples of $1,000 with a minimum purchase of $5,000.
Rates
| Corporate Bonds |
|---|
| 0 - 5 year |
| 6 - 15 year |
| 16+ year |
| Rate Range |
|---|
| 0.1% to 1.31% |
| 0.57% to 2.57% |
| 1.41 % to 3.35% |
Source: Edward Jones
Get up-to-date information on current bond, GICs and money market rates. Learn more. Corporate bonds are issued by various corporations and are available with various credit ratings, which vary according to the issuer. These also carry market and interest risk.
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