Corporations can achieve short term financing through a bills facility, however for long term financing the best method is for them to issue a bond in their own name. The government, whether on a state or provincial level issues bonds to finance large construction and development projects. Corporations and many other types of companies issue bonds for expansion, asset purchases, mergers and acquisitions, etc. A bond is a promise to repay borrowed money in addition to paying interest on specified dates and is issued for a period of more than a year. These interest payments are called coupons and are usually paid semi annually or annually? There are many types of bonds, the most common of which are fixed rate bonds and floating rate notes (FRNs). Fixed rate bonds pay a pre-determined coupon and FRNs pay coupons at a premium above the bank's fixed deposit rate. Bonds that do not pay interest are called zero coupon bonds. This type of bond is rare, as the entire risk to investors is concentrated at the maturity date where the principal becomes payable.