Problem:
Question 1: The coupon payments by corporations are tax favored, do you agree with that?
Question 2: If the corporate tax rate in U.S is lowered or raised, what impact might this have on debt financing? Would this change (lowering/raising) of a corporate tax rate impact the level of interest rates?
Question 3: Should a firm favor any specific maturity range for its issued debt? What considerations might a firm undertake when determining 'what' maturity of debt to issue?
Please provide step by step solution.