Other things held constant, if a bond indenture contains a call provision, the yield to maturity that would exist without such a call provision will generally be ____ the YTM with it. a.Higher than b.Lower than c.The same as d.Either higher or lower, depending on the level of call premium, than e.Unrelated to 5. Of the following provisions that might be found in a bond indenture, which would tend to reduce the coupon interest rate on the bond in question? a.A subordination clause in a debenture. b.A call provision. c.A convertible feature. d.Having relatively few restrictive covenants. e.All of the above.
Other things held constant, if a bond indenture contains a call provision, the yield to maturity that would exist without such a call provision will generally be ____ the YTM with it. a.Higher than b.Lower than c.The same as d.Either higher or lower, depending on the level of call premium, than e.Unrelated to 5. Of the following provisions that might be found in a bond indenture, which would tend to reduce the coupon interest rate on the bond in question? a.A subordination clause in a debenture. b.A call provision. c.A convertible feature. d.Having relatively few restrictive covenants. e.All of the above.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Other things held constant, if a bond indenture contains a call provision, the yield to maturity that
would exist without such a call provision will generally be ____ the YTM with it.
a.Higher than
b.Lower than
c.The same as
d.Either higher or lower, depending on the level of call premium, than
e.Unrelated to
5. Of the following provisions that might be found in a bond indenture, which would tend to reduce the
coupon interest rate on the bond in question?
a.A subordination clause in a debenture.
b.A call provision.
c.A convertible feature.
d.Having relatively few restrictive covenants.
e.All of the above.
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