Cedric Salos is considering different ways to raise money for the expansion of his company's operations. Cedric is not sure about the advantages of issuing bonds versus issuing common stock. In addition, he is not sure which features he should consider including with the bonds if he selects that form of financing. He asks you to explain, in simple terms, the answers to his questions.

Required 

Write a short memorandum to Cedric explaining the advantages of issuing bonds over issuing common stock and the features that should be considered for inclusion with the bonds.