Which of the following lowers the required interest rate that firms have to pay on their bonds? Which of the following raise the interest that firms have to pay? Private placements Public offerings Sinking fund provisions Protective Covenants Call provisions Collateral An active secondary market A low credit rating

Which of the following lowers the required interest rate that firms have to pay on their bonds? Which of the following raise the interest that firms have to pay? Private placements Public offerings Sinking fund provisions Protective Covenants Call provisions Collateral An active secondary market A low credit rating

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 2MC

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Question

Which of the following lowers the required interest rate that firms have to pay on their bonds? Which of the following raise the interest that firms have to pay?

Private placements

Public offerings

Sinking fund provisions

Protective Covenants

Call provisions

Collateral

An active secondary market

A low credit rating

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