Bond-buyers are also traditionally older and might have been more leery about investing in a new technology such as the Internet during the 1990s. The choice of these companies to pay a higher rate of return to compensate for the greater risk would have defeated the purpose of the corporation issuing bonds in the first place, as what makes the issuing of bonds so attractive is that the interest rates on bonds that corporations must pay investors are traditionally lower than rates for most other types of borrowing ("How Corporations Raise Capital," U.S. Department of State, 2007). For young, untried companies like the Internet companies...

6 Jul 2007. http://myretirement.retire.americanfunds.com/planning/investing/comparing.htm
How Corporations Raise Capital." U.S. Department of State." About.com. Jul 6, 2007. http://economics.about.com/od/smallbigbusiness/a/corp_capital.htm