Unique vehicle for studying capital structure decisions

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1. Why are REITs a unique vehicle for studying capital structure decisions? What does the research suggest regarding the optimal capital structure of REITs?

2. As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 18 years, the coupon rate is 13% paid semiannually, and the discount rate is 17%.

What is the estimated value of this bond today?

Reference no: EM131947436

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