Which of the following is NOT a factor that determines the coupon rate of a company's bonds?
A) The amount of uncertainty about whether the company will be able to make all the payments.
B) The term of the loan.
C) The level of interest rates in the overall economy at the time.
D) All of the options are factors that determine the coupon rate of a company's bonds.

Question

Quizplus · Accepted Answer

All of the options listed are factors that determine the coupon rate of a company's bonds. None of them can be excluded as a factor.

Which of the Following Is NOT a Factor That Determines