Description Type of Bond Bonds that are offered at a price lower than their par value at the time of issue. Bonds that must increase the bond's coupon rate if the company's rating is downgraded. Suppose you Invested in company A's bonds and the company used a large amount of that debt to acquire another firm. (Such a deal is called a leveraged buyout.) This deal led to significant losses for bondholders and had a negative impact on the firm's credit risk to,the yield to maturity will , and the value of its outstanding In such a situation, the company's bond rating is likely to bonds wil Due to the impact that sudden events could have in the value of bonds, event risk covenants, or provisions, are induded in the issuance of some corporate bonds. This covenant allows the bondholder to turn in, or put, a bond back to the issuer of the bond at par if a takeover, merger, or a major change in the company's capital structure were to occur. Such a bond is called a Grade It Now Save & Continue Contnue without saving