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Investors in corporate bonds include large
financial institutions, such as pension funds, endowments, mutual funds,
insurance companies and banks. Individuals, from the very wealthy to people
of modest means, also invest in corporate because of the many attractions
these securities offer.
Remarks: Corporate bonds (also called corporates)
are debt obligations, or IOUs, issued by private and public corporations.
They are typically issued in multiples of $1,000 and/or $5,000. Companies
use the funds they raise from selling bonds for a variety of purposes, from
building facilities to purchasing equipment to expanding the business.
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