Bonds & Notes Payable Introduction

Bonds and notes payable will be forms of raising capital for a company. In other words a company that needs cash for operations can raise capital using different options. They may take a loan form the bank, issue stock, or issue bonds. each option has pros and cons. Issuing stock results in selling equity interest in the company but does not result in interest payments. Issuing bonds and notes result in interest expense. The interest expense is deductible. Loans or notes payable are often taken from a bank. Bonds could be used to issue to the public.
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