Which of the Following Is NOT a Factor That Determines

question 124

Multiple Choice

Which of the following is NOT a factor that determines the coupon rate of a company's bonds?

• A) The amount of uncertainty about whether the company will be able to make all the payments.
• B) The term of the loan.
• C) The level of interest rates in the overall economy at the time.
• D) All of the options are factors that determine the coupon rate of a company's bonds.

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