Assignment
1. How do bonds provide financing to corporations for their capital projects?
2. What are the key differences between using bonds to finance capital projects and using stock for that purpose?
3. The value of a bond is dependent primarily on two factors. Name and explain these factors.
4. Compare and contrast the differences between stocks and bonds.
References:
Flowers, B. (2016) Financing Businesses and Public Projects with Stocks and Bonds.
Ross, S. A., Jordan, B. D., & Westerfield, R. (2016). Fundamentals of corporate finance. New York, NY: McGraw-Hill/Irwin.
Summary of the Bond Market video. Fundamentals of corporate finance. New York, NY: McGraw-Hill/Irwin.