An advantage of bonds is:Multiple ChoiceBonds require payment of par value at maturity.Bond payments can be burdensome when income and cash flow are low.Bonds require payment of periodic interest.Bonds do not affect owner control.Bonds can decrease return on equity.

Corporations choose to issue bonds for any of the following reasons, EXCEPTMultiple Choiceto improve financial leverage.to finance a corporations ongoing activities.to reduce the taxes to be paid to federal and provincial governments.if it is difficult to sell stocks.as an investment for their earnings.

Fill in the Blank QuestionFill in the blank question.From a corporation's perspective, bonds have disadvantages of asset claims and interest payments because both of these are .

Fill in the Blank QuestionFill in the blank question.One advantage of selling bonds for a corporation is that the use of funds can be used to increase the corporation's on .

Fill in the Blank QuestionFill in the blank question.A person may prefer bonds over stocks because the bond payments are guaranteed.

Multiple Select QuestionSelect all that applyThe three advantages that corporations have by issuing convertible bonds are:Multiple select question.interest rates are lower.if the bond is converted, it no longer has to be redeemed at maturity.convertible feature attracts investors who are concerned about less risky investments.convertible feature attracts investors who are interested in speculative gain.interest rates are higher.