Under normal conditions, which of the following would be most likely to increase the coupon rate required to enable a bond to be issued at par?
A) adding a call provision.
B) the rating agencies change the bond's rating from baa to aaa.
C) making the bond a first mortgage bond rather than a debenture.
D) adding a sinking fund.
E) adding additional restrictive covenants that limit management's actions.
Correct Answer:
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