Which of the following features would increase the value of a corporate bond? Which would reduce its

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Which of the following features would increase the value of a corporate bond? Which would reduce its value?

a. The borrower has the option to repay the loan before maturity.

b. The bond is convertible into shares.

c. The bond is secured by a mortgage on real estate.

d. The bond is subordinated.

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 08, 2011 06:52 AM

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Which of the following features would increase the value of a corporate bond? Which would reduce its

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Principles of Corporate Finance

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