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T/F A company has issued $5 million worth of bonds at 10 percent interest for 20 years. The economy has changed and now bonds of
T/F
A company has issued $5 million worth of bonds at 10 percent interest for 20 years. The economy has changed and now bonds of the same quality only pay 7 percent. If the bonds were convertible, the company could reissue the bonds at the lower rate and save money on interest payouts.
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