Question
What are the advantages of corporate bonds?
Interesting Question? 
(2) 
(5)
(2) (5)
Answers (1)
24th Nov 2009 by Mark P. Cussen, CFP, CMFC
Corporate bonds pay higher rates of interest than government bonds, albiet with a higher degree of risk. However, bonds issued by large multinational corporations pose relatively low real risk to investors. For example, what are the chances that Exxon or Citigroup will go bankrupt any time soon? Their bonds aren't backed by the U.S. government, but they also pay higher interest.
Corporate bonds pay higher rates of interest than government bonds, albiet with a higher degree of risk. However, bonds issued by large multinational corporations pose relatively low real risk to investors. For example, what are the chances that Exxon or Citigroup will go bankrupt any time soon? Their bonds aren't backed by the U.S. government, but they also pay higher interest.
Like This Answer? (1) (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
(1) (0)
19th Nov 2009 In Bonds
1 Answers | 206 Views
Subjects: corporate bonds,