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Which of the following actions will decrease investor's required return on a bond, holding all else equal? a. Management decides to make a bond issue

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Which of the following actions will decrease investor's required return on a bond, holding all else equal? a. Management decides to make a bond issue subordinated to another debt issue. b. The company enters a new and riskier market/product. c. The bond is upgraded by the rating agencies (say from a BBB to a AA rating) d. Changes in the bankruptcy code make it more difficult for bondholders to receive payment if in the event the firm defaults. You purchased a $1,000 par value bond with 10 years to maturity, coupon rate =10%, and a required return of 10%. Eight years later you had to unexpectedly sell the bond, and interest rates fell, so the current market rate on the bond (required return) was only 8%. What price can you

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