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:

Farsightedness

A vision condition, also known as hyperopia, where distant objects are seen more clearly than close ones.

Rod Receptors

Specialized cells in the retina that are responsible for vision in low light conditions.

Eyeball

The spherical part of the eye that contains the structures necessary for vision, including the cornea, iris, lens, and retina.

Nociceptors

Sensory receptors found throughout the body that respond to potentially harmful stimuli by sending pain signals to the nervous system.