1. What are the different types of corporate debt obligations? Why is it useful for firms to have so many different types of debt options? If you were a CFO, what strategy would you use, having many of these or using just a few? Why?
2. Comment on the following statement: â€œ An investor who purchases the mortgage bonds of a corporation knows that should the corporation become bankrupt, mortgage bondholders will be paid in full before the common stockholders receive any proceeds.â€
3. If Congress changes the tax law so as to increase marginal tax rates, what will happen to the price of municipal bonds?
4. a. What is a Build America Bond? b. What is the current status of the federal government program authorizing the issuance of such bonds?