Potential buyers of ABC Corporation bonds are concerned about ABC Corporation declaring bankruptcy. Potential buyers of...
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Potential buyers of ABC Corporation bonds are concerned about ABC Corporation declaring bankruptcy. Potential buyers of XYZ Corporation bonds are not concerned that XYZ Corporation may declare bankruptcy. Which of the following statements is correct? A B C D Other things equal, the interest rate on XYZ Corporation bonds will be high relative to the interest rate on ABC Corporation bonds. An ABC Corporation bond must have a longer term than an XYZ Corporation. XYZ Corporation bonds carry less default risk than do ABC Corporation bonds. All of the above are correct. Potential buyers of ABC Corporation bonds are concerned about ABC Corporation declaring bankruptcy. Potential buyers of XYZ Corporation bonds are not concerned that XYZ Corporation may declare bankruptcy. Which of the following statements is correct? A B C D Other things equal, the interest rate on XYZ Corporation bonds will be high relative to the interest rate on ABC Corporation bonds. An ABC Corporation bond must have a longer term than an XYZ Corporation. XYZ Corporation bonds carry less default risk than do ABC Corporation bonds. All of the above are correct.
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Answer rating: 100% (QA)
Solution aption D All aption D All of the above are correct is right because the bonds done for shor... View the full answer
Related Book For
Global Marketing management
ISBN: 978-0470505748
5th edition
Authors: Masaaki Kotabe, Kristiaan Helsen
Posted Date:
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