The Bond May Have Restrictive Covenants in Its Indenture

question 99

Multiple Choice

The bond may have restrictive covenants in its indenture. Which of the above provisions, each viewed alone, would tend to reduce the yield to maturity investors would otherwise require on a newly issued bond?

• A)1, 2, 3, 4, 5, 6
• B)1, 2, 3, 4, 6
• C)1, 3, 4, 5, 6
• D)1, 3, 4, 6
• E)1, 4, 6

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Definitions:

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Making products to meet a particular customer’s needs or wants.

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The conversion of inputs (such as raw materials, information) into outputs (products or services) through a set of operations.