Listed Below Are Some Provisions That Are Often Contained in Bond

question 26

Multiple Choice

Listed below are some provisions that are often contained in bond indentures. Which of these provisions, viewed alone, would tend to reduce the yield to maturity that investors would otherwise require on a newly issued bond? 1. $\text {Fixed assets are used as security for a bond.}$
2. $\text {A given bond is subordinated to other classes of debt.}$
3. $\text {The bond can be converted into the firm's common stock.}$
4. $\text {The bond has a sinking fund.}$
5. $\text {The bond has a call provision.}$
6. $\text {The indenture contains covenants that restrict the use of additional debt.}$

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

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Definitions:

Regulators

Nonverbal cues or behaviors that control, coordinate, or maintain the flow of communication within an interaction.

Adaptors

Nonverbal behaviors or actions often performed unconsciously in response to stress or discomfort, such as fidgeting or adjusting clothing.

Perception Checking

is a communication strategy used to verify the accuracy of one's interpretations of another person's behavior or communication, reducing misunderstandings.

Interpersonal Communication

A distinctive, transactional form of human communication involving mutual influence, usually for the purpose of managing relationships.