Corporate Bond

Corporate Bond means:
a debt instrument issued by a private corporation, as distinct from one issued by a government agency or municipality. Corporate bonds typically have four distinguishing features: (1) they are taxable (interest income is ordinary income, and gain on sale is a capital gain); (2) they have a par value of $1,000; (3) they have a fixed maturity; and (4) they are traded on major exchanges, with their prices published in newspapers. Former IRC (check if this IRC provision is current here) §§ 150(a)(1) and 171(d).

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.