Q. Which of the following causes a lower required return on a bond? (Solved)
1. The bond is callable.
2. The bond is convertible.
3. The bond’s rating changes from AA to A.
4. Both the first and third option.
- b. The bond is convertible.
1. The bond is callable.
2. The bond is convertible.
3. The bond’s rating changes from AA to A.
4. Both the first and third option.