The following are some provisions that are often found in a bond indenture.Which of these provisions would probably NOT reduce the yield to maturity that investors would otherwise require on a newly issued bond?

Question

Quizplus · Accepted Answer

Subordination to other classes of debt would increase the risk for bondholders, thereby likely increasing the required yield to maturity, rather than decreasing it. The other three provisions would typically provide some degree of protection for bondholders, potentially reducing the risk and therefore the required yield to maturity.

The Following Are Some Provisions That Are Often Found in a Bond