How is a bond price determined

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Reference no: EM131521981

Question: Western Entertainment is considering issuing bonds to finance its business expansion. The company contacts you, a business consultant charging $200 an hour, to answer the following questions.

1. What are the advantages of issuing bonds over borrowing funds from a bank?

2. What are the advantages of issuing bonds over issuing common stock?

3. How is a bond price determined?

Required: Write a memo providing answers worthy of your billing rate.

Reference no: EM131521981

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