Financial Situation: a) The project requires $10 million in capital. b) STV Corporation has $3 million in cash reserves, but they need an additional $7 million to fund the project. c) The company's management is deciding between issuing bonds and issuing common shares to raise the needed capital.

1. How do current economic conditions and market trends affect the decision between bonds and common shares?
2. What is the state of the bond market, and how might it impact bond issuance