1. Corporate debt has been expanding very dramatically in the last three decades. What has been the impact on interest coverage, particularly since 1977? (LO16-1) 

2. What are some specific features of bond agreements? (LO16-1) 

3. What is the difference between a bond agreement and a bond indenture? (LO16-1) 

4. Discuss the relationship between the coupon rate (original interest rate at time of issue) on a bond and its security provisions. (LO16- 1) 

5. Take the following list of securities and arrange them in order of their priority of claims: (LO16-1) Preferred stock Subordinated debenture Common stock Senior debenture Senior secured debt Junior secured debt

Answer rating: 100% (QA)

ANSWER 1 Corporate debt expansion over the last three decades has had a significant impact on interest coverage particularly since 1977 As debt levels ... View the full answer