Question
27. All else the same, the existence of a _____ will increase the required return on a bond a) conversion feature b) call provision c)
27. All else the same, the existence of a _____ will increase the required return on a bond
a) conversion feature
b) call provision
c) sinking fund
d) trust deed
e) protective covenant
28. Clauses in the indenture agreement that limit the actions of a bond issuer as a safeguard for bondholders are referred to as ______ and include such features as _______.
a) protective covenants, a floating interest rate
b) protective covenants, a restriction on the sale of accompany assets
c) deferred clauses, a conversion feature
d) protective covenants, a call provision
e) deferred clauses, a restriction on issuing new debt
29. A bond type that pays a variable amount of coupon interest over time is called a _____ bond
a) floating rate
b) zero-coupon
c) municipal
d) junk
e) treasury
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