A company which is forecast to experience a strong growth in its profitability is evaluating a potential bond issue.
Which of the following changes in corporate income tax and in bond yields would make the bond issue more attractive to the company?
A decrease in corporate tax and an increase in bond yields.
An increase in corporate tax and a decrease in bond yields.
An increase in corporate tax and an increase in bond yields.
A decrease in corporate tax and a decrease in bond yields.
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