Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
Risk of bonds
Borrowing by issuing bonds payable carries a risk: The company may be unable to pay off the bonds and the related interest. Why do companies borrow instead of issuing stock? Debt is a less expensive source of capital than stock, and bonds do not affect the percentage of ownership of the corporation. Companies face the following decision: How shall we finance a new project with bonds or stocK explain your answer in 100 wordsÂ