An advantage of bonds is: 1. Bonds require payment of periodic interest. 2. Bond

Question

An advantage of bonds is: 1. Bonds require payment of periodic interest. 2. Bonds require payment of par value at maturity. 3. Bonds can decrease return on equity. 4. Bonds do not affect owner control. 5. Bond payments can be burdensome when income and cash flow are low. An advantage of bonds is: 1. Bonds require payment of periodic interest. 2. Bonds require payment of par value at maturity. 3. Bonds can decrease return on equity. 4. Bonds do not affect owner control. 5. Bond payments can be burdensome when income and cash flow are low. An advantage of bonds is: 1. Bonds require payment of periodic interest. 2. Bonds require payment of par value at maturity. 3. Bonds can decrease return on equity. 4. Bonds do not affect owner control. 5. Bond payments can be burdensome when income and cash flow are low.

Explanation / Answer

Solution.

An advantage of bonds is:

4. Bonds do not affect owner control.

Because bond holder not have right of vote and held meeting in other word bond holder is not owner of the company they just a creditor of a certain and fixed amount while equity share holder have right of vote and they treated as a owner of company.

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