Which of the Following Is True About the Book Value

Multiple Choice

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.