The promises of the insurer are found in the insurance policy

Many investors may be drawn to bonds with capital gains only because:

A) long periods until maturity. B) no taxation on capital gains. C) high coupon payments. D) reduced taxation on capital gains.

The cost of debt can be determined using the yield-to-maturity and the bond rating approaches. If the bond rating approach is used, the:

a. coupon is the yield. b. yield is based on the interest coverage ratio. c. company is rated and the rating can be used to assess the credit default spread of the company's debt.