If a corporation were to choose between issuing a debenture


If a corporation were to choose between issuing a debenture, a mortgage bond, or a subordinated debenture, everything else equal (such as coupon rate, maturity, etc.) which would sell for the greatest price?

a. The debenture.
b. The mortgage bond.
c. The subordinated debenture.
d. All of the above types of bonds would sell for the same price.

 

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Finance Basics: If a corporation were to choose between issuing a debenture
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