Is it true that whenever a company is doing bad its MV of Shares goes down; so isn't it the same with the traded debt that whenever a company's profit or reputation goes down its MV of Debt goes down and vice versa?
Ask the Tutor ACCA FM
MV of debt
5y ago#1Not unless things were so bad that debt lenders felt the company was about to go bankrupt and would not be able to repay the borrowing.
Otherwise (and normally) the debt lenders will still be getting the fixed interest each year regardless of how well or badly the company is doing.
Sign into reply to this topic.