Free Version

Dashboard
Review Topics
Quizzes
Practice Exams
Flashcards
Vocabulary
Eat breakfast: you don't want to spend two hours wondering if your neighbor can hear your stomach growling. "Was that a jet?"

Bonds Part Deux – Should Sauce Borrow with Bonds?

Dashboard > Chapter 4: Raising Debt - Securities > Bonds Part Deux – Should Sauce Borrow with Bonds?

Bonds Part Deux – Should Sauce Borrow with Bonds?

Should Sauce Borrow with Bonds?

OK, come back to The Sauce Company with this background and let's talk turkey. That is: how much will The Sauce Company have to pay to borrow whatever money it wants? Banker Whiteshoe takes the lead here and explains that the basic idea is that the riskier the debt, the more expensive it should be (duh). So if The Sauce Company wanted to borrow $1,000,000, given its wonderful operating performance thus far, it is likely that amount would be priced at only a...

Looking for more? Why is this annoying box in the way? It's because you haven't paid for the course yet!

$77.77
Next: Bonds 3: The Redemption
Prev: Bonds and Bondage Part 1: Basics

*Securities is a registered trademark of the College Board, which was not involved in the production of, and does not endorse this product.