Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
Question
Chapter 19.4, Problem 6TP
Summary Introduction

To determine: The reason for which the bonds are considered as a form of debt financing.

Introduction:

Bond refers to a debt instrument which has a longer period for maturity and a fixed interest rate. Bonds are issued at that time when an entity needs a huge amount of fund.

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