Final answer:
Buyers of Barton Building Co. bonds would be most interested in the company's existing debt levels, as this impacts its ability to repay the bonds. A bond is a form of borrowing with regular repayments and can be traded in the secondary market, in contrast to a bank loan. Fred's home equity is calculated to be $20,000, as it is the amount he put as a down payment for his $200,000 house.
Step-by-step explanation:
The most relevant financial question that buyers of Barton Building Co. bonds would likely want answered before purchasing the bonds is How much debt does Barton Building Co. already have? This question is essential because the company's existing debt levels can significantly impact its ability to make timely interest payments and return the principal to bondholders upon maturity. The level of debt also affects the bond's risk and ultimately the interest rate offered to investors.
A bond is similar to a bank loan in that both are forms of borrowing and require regular repayments, but they differ in their structure, the way interest is paid, the duration, and the rights they provide to lenders or investors. For example, bondholders do not have a say in the company’s management decisions, unlike shareholders. Moreover, bonds can be traded on the secondary market, providing liquidity that a typical bank loan does not.