Corporate Bond Market
- In Budget 2019-20, the Finance Minister has announced fresh measures to boost the development of India’s corporate bond market.
- Corporate bonds are debt securities issued by private and public corporations.
- Companies issue corporate bonds to raise money for a variety of purposes.
- A buyer buys a corporate bond, and lends money to the "issuer," the company that issued the bond.
- In exchange, the company promises to return the money ("principal") on a specified maturity date, and meanwhile, pays the stated rate of interest.
- Notably, a corporate bond does not involve an ownership interest in the company, unlike when one purchases the company's equity ....
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