Question: Borrowers can ( and sometimes do ) default on their loans when Question 7 options: the dividend yield on their shares of stock reaches zero.

Borrowers can (and sometimes do) default on their loans when
Question 7 options:
the dividend yield on their shares of stock reaches zero.
they convert their bonds into perpetuities.
they declare bankruptcy.
they cannot find enough buyers of their bonds to sell all the bonds they wish to sell.

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