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:

Reactive Astrocytosis

An adaptive response in which astrocytes, a type of glial cell in the central nervous system, proliferate and hypertrophy in response to injury or disease.

Bipolar

Characterized by two distinct extremes, such as the mood swings seen in bipolar disorder, but also referring to cells with two different poles (e.g., bipolar neurons).

Glial Cell

Non-neuronal cells in the central and peripheral nervous system that provide support and protection for neurons.

Astrocyte

Star-shaped neuroglia cell involved with forming the blood-brain barrier.