What are the three major types of bonds?
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There are three main types of bonds:
Corporate bonds are debt securities issued by private and public corporations.
Investment-grade. These bonds have a higher credit rating, implying less credit risk, than high-yield corporate bonds.
High-yield. These bonds have a lower credit rating, implying higher credit risk, than investment-grade bonds and, therefore, offer higher interest rates in return for the increased risk.
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