Listed Below Are Some Provisions That Are Often Contained in Bond

question 74

Multiple Choice

Listed below are some provisions that are often contained in bond indentures: 1. Fixed assets may be used as security.
2) The bond may be subordinated to other classes of debt.
3) The bond may be made convertible.
4) The bond may have a sinking fund.
5) The bond may have a call provision.
6) The bond may have restrictive covenants in its indenture.
Which of the above provisions, each viewed alone, would tend to reduce the yield to maturity investors would otherwise require on a newly issued bond?

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

---

Definitions:

Leader's Perspective

The viewpoint or attitude of a leader based on their values, beliefs, experiences, and aims concerning leadership and management.

Formal Decision Procedures

Defined, structured methodologies and protocols for making choices and judgments within an organization.

Empowerment Programs

Initiatives designed to give employees more autonomy, responsibility, and authority over their work, aiming to increase engagement and accountability.

Participative Leadership

A leadership style where the leader involves team members in decision-making processes, ensuring their input is considered.