Answer is not A because the true economic value company A’s bond is lower than of company’s B bond. you can check by TVM by taking 100 par.
answer is B because the liability of the company B would be lower because in the end par is to be paid and economic value of comp B is higher and bonds tend to par so its liability would be lower as compared to company A.
Answer is not A because the true economic value company A’s bond is lower than of company’s B bond. you can check by TVM by taking 100 par.
answer is B because the liability of the company B would be lower because in the end par is to be paid and economic value of comp B is higher and bonds tend to par so its liability would be lower as compared to company A.