Which embedded option is most beneficial to a bond
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.
参考解答
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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