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A company has a floating-rate bond issue that is convertible into common shares after five years and putable after three years. The company is likely
A company has a floating-rate bond issue that is convertible into common shares after five years and putable after three years. The company is likely to have issued this bond for which of the following reasons? A. B. C. To protect itself against unfavorable movements in interest rates. To provide itself with the potential opportunity to repurchase the bonds at a discount. To lower the yield-to-maturity on the bond issue by making it more attractive to bondholders. In a repurchase agreement, the collateral seller: A. Is no longer exposed to the risk of the underlying collateral security. B. Agrees to buy the collateral back at a lower price at a later date. C. Is borrowing short-term funds from the collateral buyer
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