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Situation: Your company has a $20 million debt that is due 12 months from now. Your company will not have sufficient cash to pay off

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Situation: Your company has a $20 million debt that is due 12 months from now. Your company will not have sufficient cash to pay off the loan. Liquidating assets to raise the cash is not an acceptable option. The only feasible option is to borrow another $20 million and use it to pay off the current obligation. The yield curve for your company is downward sloping and is expected to remain so for at least the next 18 months. What would you recommend your firm do? (There may be more than one correct answer choice) a. We should wait as long as possible and then take out a new short-term loan to pay off the existing loan and continue to take out new short-term loans (to repay the previous loans) as long as interest rates continue to fall. We should do nothing now and wait until just before the loan is due and take out a new long-term loan to pay off the existing loan. We should borrow the money now in the form of a long-term loan because with a short-term loan we would have to

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