Which of the following is true about the book value and market value of a firm's debt?
A. The book value of a firm's debt generally is higher than the market value of the firm's debt.
B. The book value of a firm's debt generally is either equal to or very close to the market value of the firm's debt.
C. The book value of a firm's debt generally is either equal to or very close to the market value of firm's assets.
D. The market value of a firm's debt generally is higher than the book value of firm's assets.
E. The market value of a firm's debt must equal the market value of a firm's assets.
Answer: B
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