How are corporate bonds rated?

Corporate bonds are rated based on their default probability, health of the corporation's debt structure, as well as the overall health of the economy. Aaa is the highest rating a corporate bond can get, and is considered investment grade. Another important way to analyze bond yields is spreads between different kinds of bonds.

What is a rated AAA corporate bond yield?

This is lower than the long term average of 6.45%. The Moody's Seasoned Aaa Corporate Bond Yield measures the yield on corporate bonds that are rated Aaa. Corporate bonds are rated based on their default probability, health of the corporation's debt structure, as well as the overall health of the economy.

What is the interest rate on corporate bonds?

(1) On May 1, the first semiannual interest payment was received on thecorporate bonds. The bonds pay 6 percent annual interest, semiannuallyon May 1 and November 1. (2) During the first half of the year, additional contributions from individualsand foundations amounted to $205,500, in cash.