All of the Following May Serve to Reduce the Coupon

question 108

Multiple Choice

All of the following may serve to reduce the coupon rate that would otherwise be required on a bond issued at par, except a

• A) Sinking fund.
• B) Restrictive covenant.
• C) Call provision.
• D) Change in rating from Aa to Aaa.
• E) None of the answers above (all may reduce the required coupon rate).

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