Question
Of the following provisions that might be found in a bond indenture, which would tend to reduce the coupon interest rate on the bond in
Of the following provisions that might be found in a bond indenture, which would tend to reduce the coupon interest rate on the bond in question? is. A subordination clause in a debenture. b. A call provision. c. A convertible feature. d. Having relatively few restrictive covenants. e. All of the above.
Which of the following events would make it more likely that a company would choose to call its outstanding callable bonds? a. A reduction in market interest rates. b. The companys bonds are downgraded. c. An increase in the call premium. d. Answers a and b are both correct. e. Answers a, b, and c are all correct.
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