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Assuming everything else is the same, which bond would have a lower coupon rate at issuance: one with a sinking fund provision or one without
- Assuming everything else is the same, which bond would have a lower coupon rate at issuance: one with a sinking fund provision or one without a sinking fund provision? Why?
- What is the difference between the coupon rate of a bond and the yield to maturity of a bond? Which rate is more important and why?
- What is a preemptive right as it relates to common stock? Which investor would value preemptive rights more, Benjamin Solowitz who owns .0001% of the shares of XYZ Inc., or Carl Icahn who owns 50.1% of the shares of XYZ Inc.? Why?
- Why do firms accept underpricing of their initial public offerings (IPOs)?
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