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Two Types of Long-Term Debt Financing

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Name two types of long-term debt financing and list the relative advantages and disadvantages (to the borrower) of each.

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This solution discusses two types of long-term debt financing and list the relative advantages and disadvantages (to the borrower) of each in 220 words.

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Types of long term debt financing

Long term debt is an important source of financing. It entails payment of interest.

1. Bonds
It is a fixed income (debt) instrument issued for a period of more than one year with the purpose of raising capital. The central or state government, corporations and similar institutions sell bonds. A bond is generally a promise to ...

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