Problem 1: Since a corporation often has the right to call bonds at will, do you believe individuals should be able to demand repayment at any time they so desire?
Problem 2: What are the relative advantages and disadvantages of issuing a long-term bond during a recession versus during a period of prosperity?
Problem 3: What are the relative advantages and disadvantages of issuing common stock during a recession versus during a period of prosperity?
Problem 4: How does the bond rating affect the interest rate paid by a corporation on its bonds?