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What Would Your Finance Manager Say? Ike Intern stated, Our firm should always issue bonds when the market rate of interest is greater than the

What Would Your Finance Manager Say?

Ike Intern stated, Our firm should always issue bonds when the market rate of interest is greater than the stated rate of interest. By doing so, we would make lower periodic cash payments for interest. Irene Intern countered, Youre wrong. We should issue bonds only when the market rate of interest is less than the stated rate of interest. If we did, we could sell bonds at a premium and get the use of more cash. What would Ike and Irenes Finance Manager say?

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