Corporate bond

A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, mergers & acquisitions, or to expand business.^[1] It is a longer-term debt instrument indicating that a corporation has borrowed a certain amount of money and promises to repay it in the future under specific terms.^[2] Corporate debt instruments with maturity shorter than one year are referred to as commercial paper.

^ O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River, N.J.: Pearson Prentice Hall. p. 281. ISBN 0-13-063085-3.
^ Gitman & Zutter (2013). Principles of Managerial Finance (13th ed.). Pearson Education Limited. p. 283. ISBN 978-0-273-77986-5.

[:1-1] O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River, N.J.: Pearson Prentice Hall. p. 281. ISBN 0-13-063085-3.

[2] Gitman & Zutter (2013). Principles of Managerial Finance (13th ed.). Pearson Education Limited. p. 283. ISBN 978-0-273-77986-5.

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