Hello, I am looking for someone to write an essay on Why should not the city of Houston issue a bond for 2 million dollar. It needs to be at least 500 words.dollar bond wherein investors can be bondho

Hello, I am looking for someone to write an essay on Why should not the city of Houston issue a bond for 2 million dollar. It needs to be at least 500 words.

dollar bond wherein investors can be bondholders so that they can pay the city coupons of interest from the two million dollars, making a profit for the city of Houston.

Haven’t Found The Relevant Content? Hire a Subject Expert to Help You With
Hello, I am looking for someone to write an essay on Why should not the city of Houston issue a bond for 2 million dollar. It needs to be at least 500 words.dollar bond wherein investors can be bondho
Post Your Own Question And Get A Custom Answer
Hire Writer

To make a profit as an alternative source of capital is just one advantage of issuing bonds. Aside from that, bonds can be used as Leverage. the coupons that are usually paid every three,

six, or twelve months are a flexible way to make payments easier by making less payments fit the situation. Also, there is an option to create a fixed interest rate that is unaffected by changes.

Aside from being a benefit, there are also some risks and challenges when issuing bonds. Bonds are a form of debt. These debts are financial risks that leave the issuer (in this case, the city of Houston) payment obligations that are enforced by the law. They have to make these payments no matter what financial state they may be in. Compared to shares that may not be paid when it the issuer lacks money, these bonds can create financial problems for the issuer. There is also a refinancing risk wherein the issuer would need to get capital once bonds mature. This might be a problem if interest rates have been increasing, causing the issuer to possibly refinance at a higher rate. The large bullet payment of the principal at a bond’s maturity is a possibly large amount that may be difficult to pay if the principal payment is delayed. The administrative cost of handling the transactions can also be a burden, unlike a loan wherein the details are confidential. bond issuers have to disclose some details to the public as requirements by the CMD and other regulatory authorities. Bonds are also treated and taxed as income to the shareholder. To keep the bond attractive to bondholders, the issuer has to compensate for the taxes.

These are the reasons why Houston should not issue bonds. It is a risk and requires planning and manpower. The administrative cost has to be prepared before issuing the bonds. there has to be a failsafe

superadmin (28431)
New York University
15 MILLION STUDENTS HELPED!

Hire an Expert to Help you

Hire Verified Expert

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Have a homework question? Get help from verified tutors now!

Are You Looking For Assignment Help? We Can Certainly Assist You

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • ~Dissertations
  • ~Essays
  • ~All Assignments

  • ~Research papers
  • ~Term papers