Under Normal Conditions,which Action Would Be Most Likely to Increase

question 151

Multiple Choice

Under normal conditions,which action 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 changing the bond's rating from Baa to Aaa
• D)adding a sinking fund

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Definitions:

Recessive Gene

A gene that can be masked by a dominant gene and is only expressed in a homogeneous state for that trait.

Trait Expressed

A characteristic or attribute that is displayed or manifested due to genetic expression or environmental influences.

Likelihood

The probability or chance that a particular event will occur, often used in statistics and probability theory.

Identical

Exactly the same in every way; often used in the context of identical twins who share the exact same genetic makeup.