A company based in Country A with the A$ as its functional currency requires A$500...

Vendor: CIMA
Product: F3
Update on: Jul 29, 2025
Questions: 435

CIMA F3 Question Answer

A company based in Country A with the A$ as its functional currency requires A$500 million 20-year debt finance to finance a long-term investment The company has a high credit rating, but has not previously issued corporate bonds which are listed on the stock exchange Which THREE of the following are advantages of issuing 20 year bonds compared with simply borrowing for a 20 year period?

Larger capital market

Greater availability of debt of 20-year duration

Lower arrangement costs

Less administrative effort to arrange the new finance

Lower interest rate