11. Bond Yields. Other things equal, will the following provisions increase or decrease the yield to maturity

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11. Bond Yields. Other things equal, will the following provisions increase or decrease the yield to maturity at which a firm can issue a bond? (LO4)

a. A call provision.

b. A restriction on further borrowing.

c. A provision of specific collateral for the bond.

d. An option to convert the bonds into shares.

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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