Zero-Coupon Risky Debt Value in a Firm Is Equal to

question 20

Multiple Choice

Zero-coupon risky debt value in a firm is equal to

• A) Risk free debt plus a call option on the firm's assets.
• B) Risk free debt minus a put option on the firm's assets.
• C) Equity value minus a call option on the firm's assets.
• D) Firm value minus a put option on the firm's assets.

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