the bottom question is...

prospective bondholders risk exposure or risk exposure or operational burden on American sporting goods

Bond A Bond A is judged by its rating agency as being likely to pay its interest and maturity obligations on time. This is an investment-grade bond Bond B Bond B promises to pay its interest only if the issuing firm ears sufficient income. This is an income bond Assume that Universal Computer Corp. will issue either bond A or bond B in 90 days. The issues are identical except for their coupon rates and the characteristics described previously. Which bond should carry the higher coupon rate? Bond A Bond B American Sporting Goods is considering a new bond issue. While holding discussions with the company's bond underwriter, the CFO of American Sporting Goods suggested decreasing the firm's minimum working capital requirement to the issue's indenture. Everything else remaining constant, this change would be expected to the coupon rate on the bond issue and increase