Under Normal Conditions,which of the Following Would Be Most Likely

question 88

Multiple Choice

Under normal conditions,which of the following would be most likely to increase the coupon rate required for a bond to be issued at par?

• A) Adding additional restrictive covenants that limit management's actions.
• B) Adding a call provision.
• C) The rating agencies change the bond's rating from Baa to Aaa.
• D) Making the bond a first mortgage bond rather than a debenture.
• E) Adding a sinking fund.

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Definitions:

Boxplot

A standardized way of displaying the distribution of data based on a five-number summary: minimum, first quartile, median, third quartile, and maximum.

Standard Deviation

Standard deviation is a measure of the amount of variation or dispersion in a set of values, showing how much the values in a dataset differ from the mean.

Standard Deviation

A measure that indicates the amount of variation or dispersion from the average in a set of data.

Kilograms

A unit of mass equal to one thousand grams, used in the metric system.