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:

Researchers Use

The application of various methods and tools by scientists to conduct experiments, gather data, and test hypotheses.

Nervous System

The part of an organism that coordinates its actions by transmitting signals to and from different parts of its body.

Central Nervous System

The part of the nervous system that includes the brain and spinal cord, responsible for processing and transmitting messages throughout the body.

Peripheral Nervous System

The part of the nervous system outside the brain and spinal cord, consisting of nerves and ganglia, that connects the central nervous system to limbs and organs.