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CFA Level 1
Fixed Income

Characteristics of Corporate Bonds

Easy Fixed Income Securities Bond Markets

In the context of the bond markets, a corporate bond is a debt security issued by a corporation to raise funds. Investors purchase these bonds, effectively lending money to the issuing corporation in exchange for periodic interest payments and the return of the bond's face value at maturity. Consider the following characteristics of the bond markets:

Which of the following statements accurately describes an important feature of corporate bonds?

Hint

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