The Value of the Risky Debt of a Firm Is

Multiple Choice

The value of the risky debt of a firm is equal to the value of:

A) a call option plus the value of a risk-free bond.
B) a risk-free bond plus a put option.
C) the equity of the firm minus a put.
D) the equity of the firm plus a call option.
E) a risk-free bond minus a put option.