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:
Verified
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