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Special Features and Interest Rates
Adding special features to bonds, such as linking coupon payments to commodity prices or catastrophes, will reduce their attractiveness to investors and make the interest rates paid on them higher. It follows then that
a. companies should not add these special features to bonds.
b. adding these special features cannot create value for the firm if the bonds are fairly priced.
c. adding special features can still create value even if the bonds are fairly priced. Explain.
Determine how the authoritative literature addresses comprehensive income and illustrate with an example.
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Unbiased Reporting
breezes curacao has 200 rooms. each room rents at 130 per night and variable costs total 42 per room per night of
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