Which of the following is True? a) Equity can be in

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Which of the following is True?

a) Equity can be interpreted as a call option on the company’s debt.
b) Risky debt is a long position on a put option held by debtholders along with a risk free bond.
c) Both convertible and callable bonds are cheaper for the issuer in terms of interest paid relative to a straight bond.
d) The willingness of debtholders to accept a loss on the bonds they hold may help relieve the debt overhang problem.

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