When a Corporation Issues a Bond,it Is Borrowing Funds

question 72

True/False

When a corporation issues a bond,it is borrowing funds.

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Definitions:

Foregone CCA

The term "Foregone CCA" does not exist in widely recognized financial lexicons and might be incorrectly stated or highly specific to a niche sector.

Tax Shield

The reduction in income taxes that results from taking allowable deductions from taxable income, such as interest on debt.

Fully Taxable Recapture

The process whereby the IRS fully taxes the depreciation or deductions previously taken on an asset, typically when the asset is sold for a gain.

Bargain Price

A price that is significantly lower than the perceived value of an item or investment.