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Debt issued by corporations. Corporate bonds are considered riskier than government bonds, so always check the major rating services. The higher the rating, the less interest will be offered.
It is extremely important that investors check if the bond is callable - having the loan repaid in full after only a few years can be a bummer if your holding a 20 year bond.
A convertible corporate issue can be rewarding for the bond investor. Such issues offer the investor the opportunity to convert the bond to shares of the company. Such stipulations frequently result in extra income beyond that realized from the bond itself.
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