Under Normal Conditions,which of the Following Would Be Most Likely

question 88

Multiple Choice

Under normal conditions,which of the following would be most likely to increase the coupon rate required for a bond to be issued at par?

• A) Adding additional restrictive covenants that limit management's actions.
• B) Adding a call provision.
• C) The rating agencies change the bond's rating from Baa to Aaa.
• D) Making the bond a first mortgage bond rather than a debenture.
• E) Adding a sinking fund.

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