Which Factor Would Increase the Likelihood That a Company Would

question 56

Multiple Choice

Which factor would increase the likelihood that a company would call its outstanding bonds at this time?

• A)The yield to maturity on the company's outstanding bonds increases due to a weakening of the firm's financial situation.
• B)A provision in the bond indenture lowers the call price on specific dates, and yesterday was one of those dates.
• C)The flotation costs associated with issuing new bonds rise.
• D)The firm's CFO believes that interest rates are likely to decline in the future.

Understand sample size assumptions for parametric statistics.

Identify various types of errors (Type I and II) in hypothesis testing.

Differentiate between one-sample and two-sample chi-square tests.

Recognize various nonparametric tests and their purposes in data analysis.