Question 1 (2 points) Which of the following are advantages of selling bonds instead of issuing shares to new shareholders? Not having to be subject to restrictive debt covenants. Existing shareholders will not see their ownership percentage diluted. Will help future cash flow since there will be no required principal or interest payments. Will reduce income tax. will increase future borrowing capacity. will improve profits of existing shareholders if the funds can be invested in operations and earn a higher rate of return than the interest rate on the loan. Question 2 (2 points)