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Bondholders Assignment | Homework For You

Author:
June 8th, 2020
Briefly explain the following statements(ie, are they true? Why and why not?)Homework For You
The stock of a company with a single zero-coupon bond issue is a call option on the assets,
“The claim of the bondholders, which is subject to default, can be viewed as a default -free bond and a short put on the assets.
The bondholders have implicitly written the stockholders a put on
the assets.”Get Finance homework help today

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