Question 6 [5 pts]

Which of the following statements is correct? Choose only one.

Bonds are often issued with a call provision, which is the option to issue additional debt at a specified price prior to maturity.

Investment grade bonds are those with a rating of A or higher.

Debt covenants included in a credit agreement are to protect shareholders interest from potential actions that might be taken by creditors at the expense of shareholders.

The invoice price of a bond is inclusive of accrued interests and is often called a dirty price.

None of the above.

Answer: