Identify whether each of the following factors will cause


Identify whether each of the following factors will cause the required return on a debt security to be higher or lower. Briefly explain your answer. (Each part is independent).

A) A subordinated bond that is convertible, relative to a non-convertible (more senior) bond issued by the same borrower.

B) 5 years to maturity (relative to a 20 year bond issued by the same borrower)

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Management Theories: Identify whether each of the following factors will cause
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