Which of the Following Trends Can Be Unfavorable from the Viewpoint

question 31

Multiple Choice

Which of the following trends can be unfavorable from the viewpoint of a bondholder?

• A)The issuing company's debt ratio is steadily declining.
• B)The issuing company's interest coverage ratio is steadily rising.
• C)Market interest rates are steadily rising.
• D)The issuing company's net cash flow from operating activities is steadily increasing.

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Definitions:

Iodomethane

A chemical compound consisting of one iodine atom bound to a methane molecule, used in organic synthesis as a source of iodide.

Major Organic Product

The primary substance formed in the greatest amount during a chemical reaction, especially in the context of organic chemistry.

Tetrahydrofuran

An organic compound, often abbreviated as THF, which is a cyclic ether with a formula of (CH2)4O, widely used as a solvent in organic synthesis.

HBr

Hydrogen bromide, a diatomic molecule consisting of hydrogen and bromine, used as a reagent in various chemical reactions.