Which embedded option is most beneficial to a bond

财务会计 已帮助: 时间:2024-11-14 16:53:30

Which embedded option is most beneficial to a bond issuer?
A. A conversion privilege.
B. A floor on a floating rate bond.
C. An accelerated sinking fund provision.

难度:⭐⭐⭐

题库:财会类考试,特许金融分析师(C,CFA一级

标签:to,beneficial,bond

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2024-11-14 16:53:30

Ans:C;
C is the correct choice because an accelerated fund provision gives the issuer an option to retire more than the sinking fund requirement.
Neither A nor B is correct because they both benefit the bondholders.

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