Listed Below Are Some Provisions That Are Often Contained in Bond

question 65

Multiple Choice

Listed below are some provisions that are often contained in bond indentures.Which of these provisions,viewed alone,would tend to reduce the yield to maturity that investors would otherwise require on a newly issued bond? 1.Fixed assets are used as security for a bond.
2) A given bond is subordinated to other classes of debt.
3) The bond can be converted into the firm's common stock.
4) The bond has a sinking fund.
5) The bond has a call provision.
6) The indenture contains covenants that prevent the use of additional debt.

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

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Definitions:

Unimodal

Refers to a distribution that has a single peak or mode.

Median

The middle value in a sorted list of numbers, effectively dividing the distribution into two equal halves.

Mean

In statistics, it refers to the average value in a data set, calculated by summing all the numbers and dividing by the count of these numbers.

IQR

Short for Interquartile Range, it measures the middle 50% of data points in a dataset, offering a glimpse into data spread.