The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-Corporations can attract more lenders by offering a lower coupon on their bonds as compared to the government bonds.

Question

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2
 
-Corporations can attract more lenders by offering a lower coupon on their bonds as compared to the government bonds.

Quizplus · Accepted Answer

The given figure does not provide any information about bonds or coupons. Therefore, it is not possible to determine whether corporations can attract more lenders by offering a lower coupon on their bonds as compared to government bonds based on this figure.

The Figure Given Below Shows the Demand [D and D']