Under Normal Conditions, Which of the Following Would Be Most

question 53

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 a call provision.
• B) the rating agencies change the bond's rating from baa to aaa.
• C) making the bond a first mortgage bond rather than a debenture.
• D) adding a sinking fund.
• E) adding additional restrictive covenants that limit management's actions.