'1. . a. The Board of Directors is considering raising cash for a proposed acquisition, and they ask you to explain to them the pros and cons of both a debt issuance and equity issuance. 1b".||'hat would your response be?h. Not surprisingly. the Board doesn't really listen to you and issues a security that has attributes of both debt and equity. They have asked you to provide a tax opinion on whether the instrument is debt or equity? Based on the following facts what would your conclusion be??Explain. ii?bliga?on becomes payable in 10 years. But payment of interest and repayment of theobligation is subject to approval by the bank regulator. At the date of issuance, it is likely that the regulator will approve the payments. illnterest accrues at 6% a year. A 10 year debt instrument issued by a competing bank pays 5.4%interest.