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Corporate Bonds: Background
Bonds may be registered (bondholder’s name is kept in a file) or held as bearer bonds (anyone possessing the bond may sell it or collect interest payments and face value).
Each bond round of sales is called a “series.” So the company’s Series M bond issue might have occurred in 2003; and its Series N issue might have taken place in 2005. It might be that the total amount the company raised in its Series M equaled $600 million; and the amount raised (borrowed) in its Series N was $900 million.
Each bond series has its own indenture (legal document stating the requirements, definitions and consequences of default). Moreover, all of the bonds issued from a series, say Series P, have bond certificates (like a stock certificate) which specifies the company (bond issuer) name, the bond face value (par value), the coupon rate (interest rate), the dates that interest will be paid, and the maturity date (when $1,000 is paid).
Corporate Bonds: Interest Payments
Corporate bonds might have a) fixed interest rate payments (“CoCo”, b) no interest rate payments (“NoNo”), or 3) floating-rate payments (“floaters”).
The interest rate on a bond is stated as its “coupon rate.” If the company is issuing bonds that have a coupon rate of 6%; that means that the company is promising to make semiannual interest payments to the bondholder of $30 (every 6 months) until maturity—and they will pay the bondholder the face amount of $1,000 upon maturity.
Most corporate bonds have a coupon rate. Thus, from the bondholder’s POV, they are buying an annuity (with a constant periodic amount of $Int and a lump-amount, $1,000, upon maturity). Thus, this is no different than the bondholder making a loan to the corporation ($1,000) with a promised repayment by the corporation of the amount loaned ($1,000) at maturity of the loan, and periodic interest payments (if any)

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