A bond is a debt obligation, like an IOU. See the Vanguard Brokerage Services commission and fee schedules for full details.. Investments in bonds are subject to interest rate risk, which is the chance bond … Investors who buy corporate bonds are lending money to the company issuing the bond. footnote * For new-issue agency and corporate bonds, we may receive a fee concession. In return, the company makes a legal commitment to pay interest on the principal and, in most cases, to return the principal when the bond … Trading limits and minimum investments may apply. "You can invest in corporate bond mutual funds where often the minimum investment is low, or be exposed to corporate bonds by buying an exchange-traded fund, with which you get … The payment cycle is not necessarily aligned to the calendar year; it begins on the "Dated Date," which is either on or soon after the bond's issue date, and ends on the bond's … With corporate bonds, one bond represents $1,000 par value, so a 5% fixed-rate coupon will pay $50 per bond annually ($1,000 × 5%).