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.

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Definitions:

Ad Hoc Committee

A temporary committee formed for a specific task or objective and dissolved after the completion of its mandate.

Specific Business

Pertains to a particular company, industry, or commercial enterprise that is identified or distinguished by unique characteristics.

Filibustering

A legislative tactic used to prolong debate and delay or block a vote on a proposal.

Structure

The organization or arrangement of parts, elements, or components of something, forming a coherent whole.