Please explain why B and why not C.
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The company paying a higher coupon rate will incur a higher interest expense for each year (operating activities) which here is xyz.
Given bonds pull to par effect the bond paying a lower coupon (set par) will have a higher present value or par value, that is abc’s bonds
coupon rate is on par value so 9 and 11% of both is 10 million so obviously abc will have higher par value so that its 9% is equal to 11% of xyz. reason for answer not being C