Suppose a company is choosing between bank loans and bonds. The interest rate in the bank loan

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Suppose a company is choosing between bank loans and bonds. The interest rate in the bank loan is 3.5%, and an investment bank predicted that the company will pay close to 4% to issue a bond with the same maturity. In addition, fees are estimated to be higher for the bond issuance than for the bank loan. Explain why this company may still decide to issue the bond rather than borrowing through a bank

Posted Date: May 18, 2024 04:09 PM

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Suppose a company is choosing between bank loans and bonds. The interest rate in the bank loan

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