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commercial bonds are jumbo CD's starting at $100,000 and are offerred by large corporations and sometimes banks, who want to borrow a large amount of money for a short period of time. If you happen to have this kind of cash corporations are willing to pay you a higher than normal rate of return. They were more popular in the 1970's and 1980's before mutual fund money markets were available on the retail level. Now anyone can get a higher interest rate by pooling only $1,000 together with other buyer to get a higher rate for liquid money. If you look at the prospectus of a mutual fund money market you will see it is made up of large denominations of short term (15 days to 3 months) loans by some big name companies and banks.

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Q: Why would someone purchase a commercial bond?
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