Question
You have been asked to present a few matters related to Debt (Bond) financing to the Board of Directors. What is the usual collateral position
You have been asked to present a few matters related to Debt (Bond) financing to the Board of Directors.
What is the usual collateral position of Bondholders (lenders) versus Equity investors? Why can common stockholders demand a higher rate of return than lenders? Why would you suggest debt (or equity) financing?
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
