All else being equal which of the following would be most likely to increase

All else being equal which of the following would be

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16.All else being equal, which of the following would be most likely to increasethe coupon rate required for a bond to be issued at par? a.Adding a call provision.b.Making the bond a first mortgage bond rather than a debenture.c.Adding a sinking fund.d.The rating agencies changing the bond’s rating from Baa to Aaae.Adding additional restrictive covenants that limit management’s actions 17.A noncallable 10-year T-bond has a 12% annual coupon, the yield curve is flat, and it has a 10% yield to maturity. A 15-year noncallable T-bond has an 8% annual coupon, the yield curve is flat, and has a 10% yield to maturity. Which of the following statements is CORRECT? Chapter 8 Adaptive Test Prep (Multiple Choice ONLY) 1.Which of the following statements is CORRECT?
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2.If investors expected inflation to increase in the future, and they also became more risk averse, what could be said about the change in the Security Market Line (SML)? 3. Because most corporations earn returns for their stockholders by acquiring and operating tangible and intangible assets, the relevant risk of each asset should be measured in terms of its effect on the risk of the firm’s stockholders. a. True b. False
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