Question: C 6 - 9 9 . Sometimes it is not clear if a particular security is debt or equity. Suppose a corporation issues a perpetual

C6-99. Sometimes it is not clear if a particular security is debt or equity. Suppose a corporation issues a perpetual
bond with interest payable solely from corporate income if, and only if, earned. Do you think this security is actually
debt or equity? What are the issues here?

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