When the net proceeds from sale of a bond equal its par value, ...

[PhilipSeeMore]

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]

Answer to Question 1

TRUE

Answer to Question 2

B

[PhilipSeeMore]

TY

[bob]

Happy to Help