Final answer:
Corporate bonds are a type of debt security issued by companies to raise money for new projects. They carry a higher interest rate compared to Treasury bonds, but also come with a higher risk of default.
Step-by-step explanation:
Corporate bonds are a type of debt security issued by companies to raise money for new projects. They are a form of borrowing where the issuer owes the bondholders a debt and is obligated to pay them interest, known as the coupon, and repay the principal at a later date, called the maturity date. Corporate bonds carry a higher interest rate compared to Treasury bonds, but also come with a higher risk of default.