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Why would corporations offer bonds that pay 5 to 6% interest?
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October 5th, 2012
Last time I checked, the prime rate was around 3.25%. As I understand it, this is the rate at which banks are lending to their most credit-worthy customers. So, if a corporation with good credit can borrow at 3.25% interest, why would it sell bonds and pay 5 to 6% interest?
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