Author Question: When the net proceeds from sale of a bond equal its par value, the before-tax cost would just equal ... (Read 67 times)

PhilipSeeMore · **on:** Jul 11, 2018

When the net proceeds from sale of a bond equal its par value, the before-tax cost would just equal the coupon interest rate.

Indicate whether the statement is true or false

Question 2

The purpose of the debt covenant that prohibits borrowers from entering into certain types of leases is to ________.

A) protect the lender by controlling the risk and marketability of the borrower's security investments alternatives
B) limit the amount of fixed-payment obligations
C) ensure a cash shortage does not cause an inability to meet current obligations
D) limit the annual cash dividends paid by the firm

bob · **Reply #1 on:** Jul 11, 2018

Answer to Question 1

TRUE

Answer to Question 2

B

PhilipSeeMore · **Reply #2 on:** Jul 11, 2018

TY

bob · **Reply #3 on:** Jul 11, 2018

Happy to Help

Author Question: When the net proceeds from sale of a bond equal its par value, the before-tax cost would just equal ... (Read 67 times)

PhilipSeeMore

When the net proceeds from sale of a bond equal its par value, the before-tax cost would just equal ...

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bob

When the net proceeds from sale of a bond equal its par value, the before-tax cost would just equal ...

PhilipSeeMore

When the net proceeds from sale of a bond equal its par value, the before-tax cost would just equal ...

bob

When the net proceeds from sale of a bond equal its par value, the before-tax cost would just equal ...