All else being equal, which of the following provisions would INCREASE the interest rate on a bond?

A.Sinking fund

B. Call provision

C. Protective covenants

D. Convertible provision

Select the correct statement.

A. If the firm enters bankruptcy, the order of payment would be 1) common shareholders, 2) senior debt holders, 3) subordinated debt holders, and 4)preferred stockholders

B. The convertible premium on a bond is the additional interest rate received on a convertible bond compared to a non-convertible bond

C. A private placement of bonds means that the company must abide by financial disclosure laws; public offerings of bonds do not have to abide by these laws.

D. Long-term bonds have more interest rate (price) risk than short-term bonds.