Long-term bonds have maturities of 10 to 40 years. They generally pay interest semi-annually. Many bonds may be recalled prior to maturity by the issuer. If a corporation goes bankrupt, bondholders, as well as stockholders, can make a claim to the corporation's assets. In Bankruptcy proceedings, Bondholders generally receive priority over stockholders.
Some corporations issue bonds for less than their par values.
When they repay the bonds at maturity, the investors receive the face values. This is known as discounting the bond. The interest on bonds is stated as a percentage of the par value. Various rating services rate corporate bonds for their safety, creditworthiness, and likelihood of repayment. All of these common features of corporate bonds are established at the time of issue.