Explain the primary advantages of issuing bonds

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Reference no: EM131613696

Discussion: "Off-Balance Sheet Financing and Bonds"

Please respond to the following:

• Company XYZ is considering using off-balance-sheet financing in order to obtain a loan from a local bank, but the company is unsure of the various forms of off-balance-sheet financing. For management, compare and contrast the various forms of off-balance-sheet financing. Give your opinion on whether or not Company XYZ should engage in off-balance-sheet financing. Provide a rationale with your response.

• Explain the primary advantages and disadvantages of issuing bonds with call features to potential buyers. Suggest two improvements that a company could implement in order to make bonds with call features more attractive to potential buyers.

Reference no: EM131613696

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