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Fixed Interest Investments Home | Bond
Basics | Sovereign
Bonds | Corporate
Bonds | Euro Bonds Corporate bonds are similar to sovereign bonds.
In the same way that sovereign states borrow money for expansion
are redevelopment by the issue of bonds, so do large multinationals.
The return of capital on maturity
is guaranteed, only to the extent of the strength of the issuing
corporation. As these securities attract a slightly higher risk,
they have to be competitive to attract new funds. Therefore the
coupon is often 0.5% higher than
a sovereign bond.
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