A disadvantage of bond financing is: Bonds do not affect owners’ control. Interest on bonds is tax deductible. Bonds can increase return on equity It allows firms to trade on the equity. Bonds pay periodic interest and the repayment value maturity.
|a disadvantage of bond financing is|
|bonds pay periodic interest and the repayment of par value at maturity|
|since the bonds pay periodic interest and the repayment of par value , and a company which have fluctuating earning may find difficult to meet the interest payment value|