There is an inverse relationship between nterest rate and Bond Price. If bond price increases, the interest rate decreases and vice versa.
Corporate Bonds are usually consider high risk.
The contractual interest rate is the rate at which the borrower pays and the investor receives are determined.
The interest payment is called the "coupon" and it is usually a fixed amount per year, which is set when the bond is issued. But when you buy a bond on the market for a price that is different from...
Bonds have a predetermined rate of interest called the stated or contract rate, which is established by the board of directors.