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It serves as a means to raise revenue.

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Hulda Gleason

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Q: What is generally the reason for company to issue bonds?
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What is generally the reason for a company to issue bonds?

It serves as a means to raise revenue.


Why might a company decide to issue corporate bonds?

A company may decide to issue corporate bonds if the company needs to raise money for some reason. A bonds acts like a loan between an investor and a company.


Can a private company issue bonds?

Yes, a private company can issue bonds to raise capital. These bonds are typically referred to as private placements and are offered to a select group of investors. Private companies may choose to issue bonds as a way to diversify their sources of funding and potentially lower borrowing costs.


Why issue convertible bonds?

Generally, convertible bonds come at a lower cost to the issuer.


Will long term debt increase when you issue stocks and bonds?

When a company issues bonds, yes. Stocks, no.


What is a value bond?

a bond is a long term debt instrument or securried. bonds issue by the government do not have any risk of default the private sector company also issue bonds which are bonds debenture on india.


Do corporations issue stocks and bonds?

They do in fact issue stocks and bonds.


Describe a situation in which a company would choose to issue bonds. Discuss the advantages of bond financing. What challenges will this company face regarding bond financing?

what are the advantage of bond financing?


Describe the differences that exist in current accounting for original proceeds of the issuance of convertible bonds and of debt instruments with separate warrants to purchase common stock?

Companies need to finance their business plans. In order to finance them, the company can either go for debt or issue shares or issue bonds to get the required investment. Debt can be in the form of bonds.


Is bonds payable a liability account?

Bonds are the form of finance which a company issue to external investors to get finance for running of business and bonds are issued to raise capital to use for investment or daily operations as it is a long term debt that;s why it is the liability of the company to payback to original investors at specific future time for which debt is raised.


Where does the government get money when it has no more to spend?

Generally they issue bonds (in the UK these are known as 'gilts'). They pay interest on these gilts which have been bought from the government. At some time these bonds will be redeemed at par (the nominal value when they were issued) by the govenment.


What type of bonds do the United states government give issue?

municipal bonds?