Corporate Bonds work in a similar way to Government Bonds and are traded on the stock market. But there is an essential difference.

The borrower is not the Government but a Company, which issues the Bond as an alternative to taking on a bank loan to finance capital investment.

Since Corporate Bonds present a higher risk than Government Bonds, they generally pay a higher return than government paper.

Their price is not only dependent on interest rate cycles. It is also affected by the history, reputation and financial strength of the issuing company, and current market conditions also affect their price.
Prices of Corporate Bond issues in particular industries are also exposed to specific industry developments.