Corporate Bond [CB]

Corporate Bond; A bond issued by a corporation, rather than by a government. The credit risk for a corporate bond is based on the repayment ability of the company that issued the bond. Credit Risk The risk that a bond issuer will default, meaning not repay principal or interest to the investor as promised. Credit risk is also known as"default risk." Current Yield The current rate of return of an investment calculated by dividing its expected incomepayments by its current market price. Custodian A person or entity (e.g., bank, trust company, or other organization) responsible for holding financial assets.