Serial bonds are attractive to companies who

Question

Quizplus · Accepted Answer

Serial bonds are designed to be paid off in installments over a period of time, making them an attractive option for companies who want to spread out their debt payments. This approach can be particularly appealing for companies who are using the funds to finance a specific project, as it allows them to pay off the debt over the life of the project rather than having to make a large lump sum payment at the end. Additionally, the cash flow generated by the project can be used to retire the bonds as they come due, which can provide a sense of financial stability and predictability for the company. Overall, serial bonds offer a flexible and manageable approach to debt financing that can be a good fit for many companies.

Serial Bonds Are Attractive to Companies Who