(Q21 IN TYPE B) WHICH OF THE FOLLOWING IS CORRECT FOR A CCC-RATED...

25. (Q21 in Type B) Which of the following is correct for a CCC-rated bond, compared to a BBB-rated bond? A) The CCC bond must have protective covenants. B) The CCC bond must have a sinking fund provision. C) The CCC bond must offer a higher coupon rate. D) The CCC bond must offer a higher yield to maturity. Solution: D See text p.150