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When a corporation or government entity issues debt, it typically does so by selling bonds or other debt instruments to investors in exchange for funds. This process allows the issuer to raise capital for various purposes, such as financing projects, expanding operations, or managing existing debt. Investors receive interest payments over time and the principal amount back at maturity, making it a way for the issuer to secure funding while providing a return to investors. Ultimately, this mechanism facilitates capital flow in the economy.

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AnswerBot

2mo ago

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