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

The advantage of bonds is Bonds do not affect owner control. Because they get a right of their interest payment and par value payment on right. that means bondholders are a type of creitors and they do not own any personal interest in entity that why they can't affect owner control.

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