Debt and Share Markets

a) Why would a borrower choose to finance with a bond issue instead of a share issue?

b) What are the general benefits and risks to an investor of investing in a bond compared to investing in a share?

c) Like any other financial markets, bond issuers constantly develop and introduce innovative instruments with new features. List and explain three important innovations in the bond markets, in terms of what they are, when were they developed and are they likely to grow importance? (Hint: asset-backed bonds, index bonds, climate bonds, forest bonds etc.)