You don't loose any control of your company like a share issue The bond coupon or interest payment is tax deductible expense You get a fixed rate of interest and not subject to Market fluctuations Disadvantage They Carry a higher interest rate They are not suitable for small loan amount due to the high fixed cost of issue them
The advantages are that you will be able to get more things for the business. The disadvantages are that they are a lot of costs.
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To have a bond is to loan money to the issuing corporation. Some risk may occur in having bonds. These are the Inflation risk, liquidity risk and the lower returns.
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