What is typically a feature of corporate bonds?

Corporate bonds typically have a feature where the face value, also known as the principal or par value, is repaid to the bondholder at maturity. This is one of the fundamental characteristics of bonds as debt instruments; they are designed to be a way for companies to raise capital by borrowing money from investors. In return, investors receive periodic interest payments, known as coupon payments, and the return of the principal amount when the bond matures.

This feature provides a level of predictability and security for investors, as they know they will receive their initial investment back at maturity, assuming the issuing corporation does not default on its obligations. This structure is essential for distinguishing bonds from other types of financial instruments, such as stocks, where there is no obligation for repayment.

In contrast, very high-risk investments are more aligned with equities or certain volatile assets, variable interest rates could pertain more to certain types of bonds but are not characteristic of all corporate bonds, and perpetual maturity periods do not apply to typical corporate bonds, which have specific maturity dates.