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Corporate vs. government bonds

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Please help answer the following questions regarding bonds.

Capital market is mainly for raising of long-term finance, products traded are normally government bond, corporate bonds etc.

1. What is the difference between corporate and government bond?

2. Explain why do municipalities and state-owned enterprise issue bonds.

3. Are all bonds graded by credit rating agencies? Explain.

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Solution Summary

The posting helps the student understand the capital market, long-term finance, products traded, government bonds and corporate bonds. This solution discusses the difference between corporate and government bonds. It also explains why municipalities and state-owned enterprises issue bonds. It explains whether all bonds are graded by credit rating agencies. The explanation is given in a total of 140 words.

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1. What is the difference between corporate and government bond?

The obvious difference is that the corporate bonds are issued by companies and the government bonds are issued by the government. However, it is ...

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