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Foundations of Business (MindTap C...

6th Edition
William M. Pride + 2 others
Publisher: Cengage Learning
ISBN: 9781337386920

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BuyFindarrow_forward

Foundations of Business (MindTap C...

6th Edition
William M. Pride + 2 others
Publisher: Cengage Learning
ISBN: 9781337386920
Chapter 16.7C, Problem 2CC
Textbook Problem
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For a corporation, what are the advantages of corporate bonds over long-term loans?

Summary Introduction

To determine: The advantages of corporate bonds over long-term loans for a corporation.

Introduction: A corporation is an authoritative type of business that is separate from its proprietors. It is a business that is a different legitimate element from its investors. A stock is a common word used to portray the proprietorship statements of any business. A share, then again, alludes to the stock declaration of a specific organization.

Explanation of Solution

The advantages of corporate bonds over long-term loans for a corporation are as follows:

Corporations sell securities to acquire a ton of cash from a variety of bondholders and to collect bigger measures of cash than could be obtained from one lender...

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