When the raising capital for your company, issuing bonds offers two major advantages over the selling stock. There aren't any shareholders to answer to or who could affect how much of the company you own. However, you assume a new set of responsibilities when your private company issues bonds.
One or two times every year, the majority of bondholders receive their interest payments. The size of the payment they get depends on the interest rate of the bond. A privately held company frequently offers bonds issued by that company at a higher interest rate in order to the entice investors.
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