The Value of the Risky Debt of a Firm Is

question 60

Multiple Choice

The value of the risky debt of a firm is equal to the value of:

• A) a call option plus the value of a risk-free bond.
• B) a risk-free bond plus a put option.
• C) the equity of the firm minus a put.
• D) the equity of the firm plus a call option.
• E) a risk-free bond minus a put option.

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