Corporate bonds typically have maturities of 5-10 years, although some can be as long as 30 years. Unlike government bonds, which are backed by the full faith and credit of the issuing government, corporate bonds are not guaranteed. This means that if a corporation defaults on its bond obligations, investors could lose some or all of their investment.
However, corporate bonds do offer some advantages over other types of investments. For example, they tend to provide higher yields than government bonds with similar maturities.
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Benefits of Investing in Corporate Bonds
1. Safe and Secure Investment
2. Attractive Interest Rate
3. Diversification
4. Stable Cash Flow