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22 March, 19:50

At times, a parent may acquire a subsidiary's bond issue? Why might this be done?

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  1. 22 March, 19:57
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    At times a parent may acquire a subsidiary's bond issue because the parent has superior credit.

    Explanation:

    Some intercompany transaction create a debtor - creditor relationship between the parent and subsidiary, because the subsidiary have the ability to borrow large amount of capital at more favourable terms.
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