A method of long-term financing that requires repaying funds with interest is issuing bonds.

Question

Quizplus · Accepted Answer

Issuing bonds involves borrowing funds from investors and paying them back with interest over the duration of the bond's term, which typically ranges from several years to several decades. This form of financing can provide a company with a large amount of capital for long-term investments, but also requires ongoing interest payments that must be factored into the company's financial planning.

A Method of Long-Term Financing That Requires Repaying Funds with Interest