The issuing of bonds relates to the loaning of funds by investor to the bond issuer , with the bond issuer paying all the money after maturity date, the investor also receives periodic interest payments from the bond issuer. The main advantage of bond financing for hospitals is that there are low interest rates for payment, which makes it an attractive option for hospitals. Furthermore, hospitals can obtain tax-exempt bond through the proceeds of municipal bonds issued (Gapenski, 2010).
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