Under Normal Conditions, Which of the Following Would Be Most

question 95

Multiple Choice

Under normal conditions, which of the following would be most likely to increase the coupon rate required to enable 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:

Maslow's Hierarchy

A theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Physiological Needs

Basic physical requirements for human survival, such as food, water, shelter, and sleep; the foundation of Maslow's hierarchy of needs.

Breakfast Program

A service or initiative that provides morning meals to students or participants, typically in an educational or organizational setting.

Right-Brain Dominant

Characterizes individuals who tend to be more creative, intuitive, and emotionally perceptive, often excelling in visual and spatial tasks.