Corporate bonds are debt securities issued by companies to raise capital. Investors who purchase these bonds are essentially lending money to the company in exchange for periodic interest payments and the return of the bond's face value at maturity. These bonds can vary in terms of risk and return, depending on the issuing company's creditworthiness. Investing in corporate bonds can be an attractive option for those seeking a steady income stream. However, it's important to assess the credit rating of the issuing company, as lower-rated bonds may offer higher yields but come with increased risk of default. Understanding the nuances of credit ratings is crucial for making informed investment decisions.