answersLogoWhite

0


Best Answer

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.

User Avatar

Wiki User

9y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why might a company decide to issue corporate bonds?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Why do companies issue corporate actions?

Companies issue corporate actions by checking first to see if it is in the court of law. Then the company will decide on if they want to sue or not. It is easy.


Can a private company issue bonds?

Yes, a private company too can issue bonds.


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.


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

It serves as a means to raise revenue.


What is generally the reason for company to issue bonds?

It serves as a means to raise revenue.


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.


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

municipal bonds?


Define and explain issue and allotment of corporate finance?

issue is the companies issuing shares to the public. An allotment process is whereby the shares which have been applied for by the public are allotted to the share applicants in the percentage holding of the company that they have applied for