Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a company. 1 Advantage 2.75 points a. An organization earns a lower retum with borrowed funds than it pays in interest. b. A business carns a higher return with the funds from the bond thank pays in interost. c. Requires payments of interest even when cash flows are low. d. Bond Interest payments reduce total taxes paid. e. Unlike equity ownership, a par value payment is required at a specified date. 1. Bonds do not affect owner control. eBook Print References