Who should buy corporate bonds?
Investment-grade corporate bonds are appropriate for income-oriented and conservative investors who want a higher yield than would be available with government bonds. They also might be suitable for aggressive stock-oriented investors looking for diversification. Aggressive investors looking for income might prefer corporate bonds over government bonds because of the superior interest rate, although there are a few other fixed-income investments that offer an even better return, such as junk bonds, real estate investment trusts, and convertible bonds, but they also provide some capital appreciation as part of the stock conversion value. However, because corporate bonds pay full taxable interest, unless you need the income, it would be best to use corporate bonds in your tax deferred retirement account..
