Identify Those Trends That Are Unfavorable from the Viewpoint of a Bondholder

question 153

Multiple Choice

Identify those trends that are unfavorable from the viewpoint of a bondholder (More than one answer may be correct.)

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