The advantages of obtaining long-term funds by issuing bonds, rather than issuing additional common stock, include which of the following?

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Issuing bonds allows a company to obtain long-term funds without surrendering ownership control, just like issuing additional common stock. Additionally, interest expense paid on the bonds is tax-deductible, which can result in significant tax savings. The default risk of the company may or may not decrease depending on the creditworthiness of the company and the terms of the bonds issued.

The Advantages of Obtaining Long-Term Funds by Issuing Bonds, Rather