Chapter 14, Problem 4DQ

To determine

Concept Introduction:

Sources of funds:

An entity can raise find through several sources like own capital investment, issuing shares (Common or preferred), issuing debt instruments or taking loans from lenders.

Bonds:

Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

To explain:

The Bonds Indenture and its provisions