a. Why might an income bond be attractive to a corporation with volatile cash flows? Can you

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a. Why might an income bond be attractive to a corporation with volatile cash flows? Can you think of a reason why income bonds are not more popular?
b. What do you think would be the effect of a put feature on a bond’s coupon? How about a  convertibility feature? Why?

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Fundamentals of corporate finance

ISBN: 978-0073382395

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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