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 will be higher than the market value of the firm's debt.
B. ?The book value of a firm's debt will be equal to the market value of the firm's debt.
C. ?The book value of a firm's debt will be equal to the market value of firm's assets.
D. ?The market value of a firm's debt will be higher than the book value of firm's assets.
E. ?The market value of a firm's debt will be equal to the market value of a firm's assets.


Answer: B

Business

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