How is a bond price determined

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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.

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

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

Question 3: How is a bond price determined?

Reference no: EM132497889

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