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1. Options: a. Original Issued Discount Bonds; b. Fallen Angels; c. Par Value Bonds; d. Payment-in-kind-bonds 2. Options: a. Step-up Provision in Bonds; b. Payment-in-kind-bonds;
1. Options: a. Original Issued Discount Bonds; b. Fallen Angels; c. Par Value Bonds; d. Payment-in-kind-bonds
2. Options: a. Step-up Provision in Bonds; b. Payment-in-kind-bonds; c. Zero Coupon Bonds; d. Originial Issue Discount Bonds
3. a. Increase; b. Decrease
4. a. Increase; b. Decrease
5. a Increase; b. Decrease
2. More on the characteristics of bonds Based on the descriptions given in the following table, identify the type of bond that best matches each description: Description Type of Bond Bonds that are offered at a discounted price at the time of issue Bonds that pay coupons in the form of additional bonds Suppose you invested in company A's bonds, and the company used a large amount of that debt to acquire another firm. (Such a deal is called a leveraged buyout.) This deal led to significant losses for bondholders and had a negative impact on the firm's credit risk. In such a situation, the company's bond rating is likely to , the yield to maturity will , and the value of its outstanding bonds willStep by Step Solution
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