Question

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

Answer 1

E.

Step-by-step explanation:

Adding a call provision.

Is a stipulation on the contract for a bond - or other fixed-income that allows the issuer to repurchase and retire the debt security.