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    Junk Bond Market Implications

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    The development of the new issue junk bond market had important implications for capital structure choice. The existence of a viable junk bond market means that firms can comfortably maintain higher degrees of leverage than they could prior to the development of this market. Do you agree or disagree?

    Give examples and justify answer.

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    https://brainmass.com/business/bond-valuation/junk-bond-market-251871

    Solution Preview

    The existence of a viable junk market means that firms can comfortably maintain high degrees of leverage than they could prior to the development of this market. I agree. First, a junk bond is a non-investment grade bond which has ...

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    The solution examines the junk bond market implications for capital structure choices.

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