The difference between the value of a government bond and a similar corporate bond is equal to

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The difference between the value of a government bond and a similar corporate bond is equal to the value of an option. What is this option, and what is its exercise price?

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Related Book For  answer-question

Principles of Corporate Finance

ISBN: 978-1260013900

13th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

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