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A Corporate bond is a Bond issued by a Corporation , as the name suggests. The term is usually applied to longer term debt instruments, generally with a maturity date falling at least 12 months after their issue date (the term "commercial paper" being sometimes used for instruments with a shorter maturity).

Sometimes, the term "corporate bonds" is used to include all bonds except those issued by governments in their own currencies, although, strictly speaking, it only applies to those issued by corporations.

Corporate bonds are often traded on major Exchanges (such bonds being described as "listed" bonds)and ECNs like MarketAxess, and the Coupon (i.e. Interest payment) is usually Taxable .

Compared to Government Bonds , they generally have a higher risk of Default (although this risk depends, of course, upon the particular corporations and governments being compared).