What are the Corporate Bonds?

Corporate bonds are issued by huge corporations while they require long-term financing. They generally make interest payments double a year (semi-annually). Obviously such debt is not risk-free and the level of risk will depend onto the nature of the corporation’s activities (for example contrast utilities along with biotech firms). The degree of risk that depends onto the default risk of the company is higher than for government and municipal bonds. It finds the presence of higher interest rates. Furthermore, this provides bondholders senior claims onto corporate assets into the event of bankruptcy.