Business corporations exchange bonds in order to lend or borrow money from financial institutions and other businesses. A manager can accumulate additional capital and invest it in operations that boost a company's profitability by using corporate bonds.
6.4% is the coupon rate (C).
5.6% is the yield to maturity (YTM).
14 years make up the current bond duration (D). (15 years plus one).
Are investments in corporate bonds wise?
The yields on investment-grade corporate bonds are close to multi-year highs, which attracts income-seeking investors. Investment-grade corporate bonds should be more prepared than high-yield bonds in the event that market volatility does increase, even though a downturn in the economy may severely affect all firms.
Are investments in corporate bonds wise?
The yields on investment-grade corporate bonds are close to multi-year highs, which attracts income-seeking investors. Investment-grade corporate bonds should be more prepared than high-yield bonds in the event that market volatility does increase, even though a downturn in the economy may severely affect all firms.
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