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Under normal conditions, which of the following would be most likely to increase the coupon rate required for a bond to be issued at par?
Under normal conditions, which of the following would be most likely to increase the coupon rate required for a bond to be issued at par?
a The rating agencies change the bond's rating from Baa to Aaa.
b Making the bond a first mortgage bond rather than a debenture.
c Adding a sinking fund.
d Adding a call provision.
e Adding additional restrictive covenants that limit management's actions.
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