5. Default option (S24.2) Other things equal, would you expect the difference between the price of a

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5. Default option (S24.2) Other things equal, would you expect the difference between the price of a Treasury bond and a corporate bond to increase or decrease with

a. The company’s business risk?

b. The degree of financial leverage?

c. The time to maturity?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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