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Of the Following Provisions That Might Be Found in a Bond

Question 3

Multiple Choice

Of the following provisions that might be found in a bond indenture, which would tend to reduce the coupon interest rate?


A) A call provision
B) No restrictive covenants
C) A sinking fund provision
D) Change in bond rating from AAA to AA
E) None of the above (that is, all will increase the coupon rate)

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