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All else held equal, which of the following would increase a bond's yield to maturity? Choose all that apply. Hint: Anything that makes the bond
All else held equal, which of the following would increase a bond's yield to maturity? Choose all that apply. Hint: Anything that makes the bond riskier to investors would cause investors to pay less for the bond.
a) Rating changes from BBB to B. | ||
b) Liquidity of the bond increases (the number of bonds available to buy or sell increases). | ||
c) Issuing company uses newly-issued equity to pay off a large portion of its debt. | ||
d) Bond is callable. |
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