Written Communication

AP97 Western Entertainment is considering issuing bonds to finance its business expansion. The company contacts you, a business consultant charging $200 an hour, to answer the following questions.

1.	What are the advantages of issuing bonds over borrowing funds from a bank?
2.	What are the advantages of issuing bonds over issuing common stock?
3.	How is a bond price determined?

Required:

Write a memo providing answers worthy of your billing rate.