Corporate bonds are the debt obligations that are sold by corporations.  These bonds are primarily issued in order to obtain capital to build more facilities, purchase equipment, or to expand the business.  The principle paid  for the bond is repaid at the maturity date of the bond.  Interest payments are made throughout this time, usually twice a year.  The corporate bond market is a large and liquid market with over $3 trillion in outstanding debt.  These bonds offer a higher yield than government bonds because they are riskier.  Corporate bonds are rated, giving the investor the information on the amount of risk associated with the individual bond.  There are generally five types of corporations that issue these bonds, public utilities, transport companies, industrial corporations, financial service companies, and conglomerates.