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. If market interest rates have increased since a company last borrowed long-term funds, the market value of these long-term funds will likely be: (please

. If market interest rates have increased since a company last borrowed long-term funds, the market value of these

long-term funds will likely be: (please explain why)

A.

greater than their book value.

B.

less than their book value.

C.

equal to their book value.

D.

unknown without knowing the maturity of the debt.

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