I'm trying to solidify my understanding of bonds, and I have a question regarding something that's probably very basic.
Say I have a company and I want to issue some bonds in order to fund some of my plans. Let's say I need $1 billion at a coupon rate of 5%.
From a creditor's point of view, why would they ever even consider investing in my company? The fact that I need to borrow all this money would be a telltale sign that I would have a hard time paying the annual coupons, right?