Which of the following bonds with the same coupon rate, time to maturity and yield has the lowest price?

A) All bonds have the same price because they have the same coupon rate, time to maturity, and yield to maturity

B) Retractable bonds

C) Convertible bonds

D) callable bonds

E) Extendable bonds

Question:A company has a market value of equity divided by book value of equity that is greater than 1.0. If this company uses book values of equity to determine their WACC. They will derive a value that is _______ the market based on WACC. Because______

A) Less than, the ratio of debt will be less than if the ratio was based on market values

B) Greater than, the ratio of debt will be less than if the ratio was based on market values

C) Greater than, the ratio of debt will be greater than if the ratio was based on market values

D) Equivalent to, the ratio of debt is the same whether book values or market values are used

E) Less than, the ratio of debt will be greater than if the ratio was based on market values