In parts of the US, supper and dinner are used interchangeably to refer to the evening meal, but elsewhere dinner is the midday meal, akin to lunch, and supper, the evening meal.
What is a high-yield corporate bond? A high-yield corporate bond is a type of corporate bond that offers a higher rate of interest because of its higher risk of default. When companies with a greater estimated default risk issue bonds, they may be unable to obtain an investment-grade bond credit rating. conomic risk. If the economy falters, some investors are likely to try to sell their bonds. In what is known as a âflight to quality,â a number of investors may decide to replace their riskier high-yield bonds with safer ones, such as u.s. treasury bonds.
There's also a much larger selection of corporate bonds. The disadvantage is that you do have to pay federal income tax on the interest they earn. Especially when investing in corporate bonds, it's important to consider how risky the bond is. No investor wants to pour a lot of money into a low-yield bond if there's a 50-50 chance the company will go under. You can research the issuer's financial situation to see how solid its prospects are.