What is the tax advantage when bonds are issued instead of stock?

The tax advantage of issuing bonds (or other debt) instead of stock results from the interest paid by the company being a deductible expense on its federal and state income tax returns. Dividends paid to stockholders are not a deductible expense, since dividends are a distribution of profits to the owners of the corporation.

cuz, issue cost of bonds might be tax deductable

interest cost is tax deductable too...

WAAC of a company is lower due to bond element in total long term base(Equities+long tern debt) of an organization...