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Judy Bailey
Judy Bailey,
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Experience:  Teacher at Sonoma County Schools
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Identify the advantages and disadvantages of bond financing.

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Identify the advantages and disadvantages of bond financing. APA style 200-300 words.
Can I get this to you this evening? I have a birthday party to attend. If not, I will opt out. Judy
Customer: replied 6 years ago.

Ok, Judy.

The advantages of bond financing are

1) There is a fixed interest rate for the term of the loan, so budgeting is simplified knowing your principal payments and interest payments never change. You don’t have to worry about interest rates increasing.

2) There is no balloon payment at the end, the bond is fully amortized over the given period. You have no need to refinance.

3) You can borrow additional sums later without disturbing the bond financing loan. Future funds are more easily accessible.

4) Prepayment is not penalized. You can use excess cash to pay down the loan without penalty.

5) Non-profit companies find them convenient

The disadvantages of bond financing are

1) Cannot be refinanced if a lower rate becomes available

2) Does not contribute to the enhancement of credit

3) Since the issues are unenhanced (sold with letters of credit), the lower rated ones are expensive


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Customer: replied 6 years ago.


Can you please cited?


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