Bond Education | Glossary
Corporate Bond
Company-issued debt instruments that are considered financial obligations of a corporation. Corporate bonds can be broken down into three categories; debentures, medium term notes, and commercial paper. Maturities on corporate bonds can range from three months to one hundred years, and credit quality of issuers will vary. Generally, corporate bonds are broken down into four sectors: industrial, financial, transportation, and utility. They can be issued in both callable and non-callable formats.