Why would a company issue bonds?

Question $17$Answer

a$.$

It is a relatively easy way to raise capital, and it is cheaper than equity financing.

b$.$

Bonds are a self$-$extinguishing loan that pays both interest and part of the capital borrowed with each payment.

c$.$

Government bonds and company bonds pay interest at the risk$-$free rate of return.

d$.$

Interest payments can be delayed if the company does not have the cash available to make an interest payment.