Which of the following will have the greatest need of strong bond covenants if it is to receive a high bond rating?
a foreign bond
a mortgage bond
2 In terms of public offerings of bonds, what is an indenture?
a memorandum that must be produced to describe the details of a bond offering
a list of the duties of a trust company representing the bondholders' interests
a formal contract that specifies a firm's obligations to the bondholders
a schedule of the fees charged by an underwriting company
Which of the following would be most likely to have the lowest price?
a straight subordinated bond
a callable subordinated bond
a convertible senior bond
a straight senior bond