Which of the following bond provisions will make a bond more desirable to investors, other things being equal? *2 The bond is convertible. The bond is callable. The coupon rate is lower. The bond is subordinated.

Which of the following bond provisions will make a bond more desirable to investors, other things being equal? *2 The bond is convertible. The bond is callable. The coupon rate is lower. The bond is subordinated.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.6: Perpetuities

Problem 2ST

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Question

Which of the following bond provisions will make a bond more desirable to investors, other things being equal?
*2
The bond is convertible.
The bond is callable.
The coupon rate is lower.
The bond is subordinated.

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