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3. The return on bonds of varying risk Aa Aa E Read each description that follows and identify the type of bond being described. Bond
3. The return on bonds of varying risk Aa Aa E Read each description that follows and identify the type of bond being described. Bond A Bond B Bond A is judged by its rating agency as being likely to pay its interest and maturity obligations on time. Bond B promises to pay its interest only if the issuing firm earns sufficient income. This is an income bond This is an investment-grade bond . Assume that Universal Computer Corp. will issue either bond A or bond B in 90 days. The issues are identical except for their coupon rates and the characteristics described previously. Which bond should carry the higher coupon rate? O Bond A Bond B American Sporting Goods is considering a new bond issue. While holding discussions with the company's bond underwriter, the CFO of American Sporting Goods suggested decreasing the firm's minimum working capital requirement to the issue's indenture. Everything else remaining constant, this change would be expected to the coupon rate on the bond issue and increase 3. The return on bonds of varying risk Aa Aa E Read each description that follows and identify the type of bond being described. Bond A Bond B Bond A is judged by its rating agency as being likely to pay its interest and maturity obligations on time. Bond B promises to pay its interest only if the issuing firm earns sufficient income. This is an income bond This is an investment-grade bond . Assume that Universal Computer Corp. will issue either bond A or bond B in 90 days. The issues are identical except for their coupon rates and the characteristics described previously. Which bond should carry the higher coupon rate? O Bond A Bond B American Sporting Goods is considering a new bond issue. While holding discussions with the company's bond underwriter, the CFO of American Sporting Goods suggested decreasing the firm's minimum working capital requirement to the issue's indenture. Everything else remaining constant, this change would be expected to the coupon rate on the bond issue and increase
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