Corporate Bonds

Several public sector and private corporate raise resources from the primary market by floating rated bonds. Once the primary issue is closed, these bonds are also available in the secondary market and can be purchased and the delivery can be into an existing demat account. The broken period interest needs to be paid by the buyer of the bond and he would be paid the full interest on the respective due interest dates.

Sample of a Corporate Bond

Issuer Fixed interest rate Maturity date Early payment date(if any) Interest dates Unit size of each bond
Power finance corporation AAA rated 8.57% 21-Dec-2024 Secondary Sale 15th May-Annual Rs.10 lacs