The major disadvantages of issuing a bond are the risk of bankruptcy and the negative impact on cash flow because debt must be repaid at a specified date in the future.

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Issuing a bond involves taking on debt which must be repaid at a specified date in the future. If a company is unable to make the required payments, it may lead to bankruptcy. Additionally, the interest and principal payments on the bond can negatively impact a company's cash flow.

The Major Disadvantages of Issuing a Bond Are the Risk