Question: a) Explain why issuing a bond is a better choice for a firm compared to a bank loan, especially when the firm has to invest

a) Explain why issuing a bond is a better choice for a firm compared to a bank loan, especially when the firm has to invest in a project with a huge investment outlay. Provide examples to support your answer.

b) Market interest rate and maturity of the bond have a negative relationship with the value of bond. Do you agree (or disagree) with the statement? Explain your answer with examples.

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