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Suppose a company is choosing between bank loans and bonds. The CEO has no Finance background and she is surprised to learn that while the

Suppose a company is choosing between bank loans and bonds. The CEO has no Finance background and she is surprised to learn that while the interest rate in the bank loan is significantly lower, the CFO is proposing that the company goes to the bond market to issue debt rather than borrowing from a bank. How can the CFO justify this choice?

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