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Accounting Homework Help
B. VALUATION OF SHARES (10 MARKS)
a. How does a bond issuer decide on the appropriate coupon rateto set on its bonds? Explain the difference between the coupon rateand the required return on a bond.
- Please give a 300 words explain
(5 Marks)
b. Companies pay rating agencies such as the Standard and PoorRating Service, to rate their bonds, and the costs can besubstantial. However, companies are not required to have theirbonds rated in the first place; doing so is strictly voluntary. Whydo you think they do it?
- Please give a 300 words explain
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