Which of the Following Trends Can Be Unfavorable from the Viewpoint

question 31

Multiple Choice

Which of the following trends can be unfavorable from the viewpoint of a bondholder?

• A)The issuing company's debt ratio is steadily declining.
• B)The issuing company's interest coverage ratio is steadily rising.
• C)Market interest rates are steadily rising.
• D)The issuing company's net cash flow from operating activities is steadily increasing.

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Definitions:

Ounce Bags

Small bags designed to hold a specific weight of a product, typically measured in ounces.

Gummi Candy

A chewy, often fruit-flavored confection made from gelatin, sugar, and various flavorings.

Income Taxes

Taxes levied by the government on individuals or entities based on their net income or profit.

Necessary Deductions

Expenses or amounts that are required to be subtracted from income, often for the purpose of calculating taxable income.