Answer:
A bond issue is a common source of long-term financing for a corporation.
Explanation:
Bonds are issued by corporate companies as a way of raising funds to finance long-term corporations.
Large corporations have been attracted to this type of fundraising for two reasons: they have returns well above the fixed-income market average and reasonably low risk. To give you an idea, some even pay 125% of market interest for two-year applications. Not bad when it comes to fixed income.
Typically, the issuance of securities is restricted to qualified investors (those with over $ 300,000 for investments) and institutional investors (pension funds, asset managers and insurers).
