Everyone is familiar with Government Bonds and Treasury Bills. How about corporate bonds? A company needs cash and capital to run or expand the business. There are several ways for the company to raise money. It can borrow from the bank, getting listed, execute rights issues (if listed), take in private investments or issue corporate bonds. Out of these methods, the company will likely choose the least cost of borrowing. So if the company decided to issue bonds, it means that it is the cheapest the way to borrow. More often than not, corporate bonds will give out a higher interest rate (or coupon payment) higher than what the government would offer. In year 2010, we can see some of the big organizations like Temasek Holdings and SIA issuing bonds to the public. Retail investors can only buy and sell bonds listed on the Singapore Stock Exchange. For over the …