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Question 19 of 28 1 Points A proposed debt agreement between South Star Caf and its lender says the caf is not allowed to pay
Question 19 of 28 1 Points A proposed debt agreement between South Star Caf and its lender says the caf is not allowed to pay any dividends to its equity holders until the interest is paid to the lender each year. The yield to maturity is 8% on this proposed agreement. The caf would like to get rid of this clause. What would happen to the yield to maturity without this clause? A. It will most likely be lower than 8%. B. It will most likely still be 8%. C. It will most likely be more than 8%. D. It depends on the marginal tax rate. Reset Selection
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