Which features would increase the value of corporate bond


Which of the following features would increase the value of a corporate bond? Which would reduce its value?

a. The borrower has the option to repay the loan before maturity.

b. The bond is convertible into shares.

c. The bond is secured by a mortgage on real estate.

d. The bond is subordinated.

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Finance Basics: Which features would increase the value of corporate bond
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