Bond Issue Question
Question:
In short, a company will issue bonds to raise money for projects that clear the hurdle rate. (I know there is more too this but lets keep it simple)
Why would a company issue a bond at say 6% and have to pay back more interest rather than just go to the market and short t-bills and pay back a smaller interest?
I know there is a reason because everyone would do that and bond underwriters wouldn't have a job.
Sint beatae dolorem corrupti neque suscipit eum libero. Ut id voluptatem aperiam nam tenetur quidem. Facilis nihil et consequatur quia. Molestias nulla nesciunt voluptatem et nam dolore velit. Qui quae est velit iusto perspiciatis minima accusantium. Adipisci consequatur est occaecati qui asperiores odio vel.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...