QS 10-1 Advantages of bond financing LO A1 Identify the following as either an advantage...
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QS 10-1 Advantages of bond financing LO A1 Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a company, 6. Requires payments of both periodic interest and par value at maturity b. Bond interont paymento reduce total taxes poid. c. Unlike equity ownership, a par valuo payment is required at a specified dato d. Unlike equity, bonds do not affect ownership of a company. e. A business cams a lower return with the funds from the bond than it pays in interest 1. A business cams a higher rotum with the funds from the bond than it pays in interest
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