Question: Suppose a company simultaneously sold two long-term debt issues at par: 918 percent senior debentures and 938 percent subordinated debentures . What riskreturn tradeoff would

Suppose a company simultaneously sold two long-term debt issues at par: 91⁄8 percent senior and 93⁄8 percent subordinated . What risk–return tradeoff would be faced by an investor who was considering one of these issues?

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