Corporate bonds sometimes have call provisions to allow for early prepayment if prevailing interest rates change so dramatically that the company deems it can do better by issuing a new bond
Investors may also opt to sell bonds before they mature
If a bond is sold, the owner gets less than face value
What is a corporate bond?
A corporate bond is debt issued by a company in order for it to raise capital
An investor who buys a corporate bond is effectively lending money to the company in return for a series of interest payments, but these bonds may also actively trade on the secondary market
A bond is a debt obligation, like an IOU. Investors who buy corporate bonds are lending money to the company issuing the bond. In return, the company makes a legal commitment to pay interest on the principal and, in most cases, to return the principal when the bond comes due, or matures.
Corporate law bond
Private university in Queensland, Australia
Bond University is Australia's first private not-for-profit university and is located in Robina, a suburb in the City of Gold Coast, Queensland. Since its founding on 15 May 1989, Bond University has primarily been a teaching-focused higher education institution featuring a three-semester-per-year timetable.
Bond where the face value is repaid at the time of maturity
A zero-coupon bond is a bond in which the face value is repaid at the time of maturity. Unlike regular bonds, it does not make periodic interest payments or have so-called coupons, hence the term zero-coupon bond. When the bond reaches maturity, its investor receives its par value. Examples of zero-coupon bonds include US Treasury bills, US savings bonds, long-term zero-coupon bonds, and any type of coupon bond that has been stripped of its coupons. Zero coupon and deep discount bonds are terms that are used interchangeably.
