Download or read book Analysis of Bonding Vs. "pay-as-you-go" Financing written by Matthew Rowell and published by . This book was released on 1999 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt: The decision to bond or to pay-as-you-go must be made on a case-by-case basis where all of the relevant concerns are taken into consideration. Research has allowed us to develop the following general conclusions: The interest cost of bonding is not outweighed by the effects of inflation. nterest payments impose a real cost on bond issuers. Continual bonding may result in there being less funds available for other uses, but this effect may be outweighed by the benefits bonding affords. The principal benefit of bonding is that it allows projects to be completed sooner.