Why are bonds a popular source of financing?
A) because the relative cost of issuing debt is often lower than the cost of issuing equity
B) because financial analysts tend to downgrade a company that has raised large amounts of cash by frequent issues of shares
C) because a company having cash flow problems can postpone payment of interest to bondholders
D) because the bondholders can always convert their bonds into shares if they choose
Correct Answer:
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Q60: Match these terms with their definitions.
-the rate
Q61: When do bonds sell at a premium?
A)
Q62: Match these terms with their definitions.
-a type
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-term referring
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A)
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