1. An advantage to the corporation of issuing zero coupon bonds is
lower interest rates than conventional bonds.
cash inflow with lower cash outflow than conventional bonds.
tax benefits due to amortization.
none of these options are advantages.
2. Which of the following statements regarding the June 2009 bankruptcy of General Motors (GM) is false?
The government provided more than $50 billion in the bailout.
The common stockholders received no cash.
The U.S. government still owns some of the common stock of GMas of 2014.
The secured debtholders were paid off in full.