Relationship between par value market value and book value

Reference no: EM131338581

1. Suppose a company simultaneously sold two long-term debt issues at par: 9.1\8 percent senior debentures and 9 3⁄8 percent subordinated debentures. What risk-return tradeoff would be faced by an investor who was considering one of these issues?

2. What is the relationship between par value, market value, and book value for the following?

a. Long-term debt

b. Preferred stock

Reference no: EM131338581

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