. Mae 7) il to her the coupon rato regulad for a bond to be sundat pa Under normal conditions, which of the following would be most likely Assume * Adding adultional restrictive covenants that limit managements actions b. Adding a call provision d. Making the bond tirat mortgage bond rather than a debenture The rating agencies change the band's rating from Baa to face e. Adding a sinking tund. *) vidume that a noncallable 10-year 1-bond has a 120 annual coupon while a 15-year noncalable T-bond has an annual coupon also that the yield curve is that and an Treasury securities ORECT? 108 yield to maturity. Which of the following statements is CORRECT? 4. but interest rates decline, the prices of both bonds would increase, price b. Interest rates decline, the prices, of both bonds would increase. but the 10-year bond would have a larger percentage increase in price. c. The 10-year bond would sell at a discount, while the 15-year bond would sell at a premium. d. The 10-year bond would sell at a premium, while the 15-year bond If the yield to maturity on both bonds remains at 108 over the next year, the price of the 10-year bond would increase, but the price of the 15-year bond would fall. but the 15-year bond would have a larger percentage increase in would sell at par. e