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.
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