Bond market value will be less than its par value

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1. A bond's market value will be less than its par value if:

the bond is convertible to common stock

the bond's yield to maturity is greater than its coupon rate

the bond's coupon rate is greater than 0%

the bond's coupon rate is less than its market value

2. Investors are willing to pay 938.55 on a bond that pays $90 a year for ten years.

what is the before tax cost of debt

What is the after tax cost of debt tax rate = 40%

 

Reference no: EM132061323

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