Question: 8. What does a negative clause do? O A. It prohibits the issuing of any further bonds without the permission of the existing bondholders.

8. What does a negative clause do? O A. It prohibits the

8. What does a negative clause do? O A. It prohibits the issuing of any further bonds without the permission of the existing bondholders. O B. It prevents a bond issuer from issuing new debt with seniority over current debt. O C. It forces the issuer to establish a sinking fund to redeem bonds as they come due. O D. It prevents a bond issuer from calling bonds without paying a premium to the bondholders. 17. A bond has a par value of $1,000 and a market value of $1,124. The conversion price is $32.50. What's the conversion ratio? O A.51 O B. 48 OC. 33 O D. 42 A sinking fund is an account used for which of the following purposes? DA. To provide funds to make interest payments if a corporation experiences financial distress OB. To make dividend payments to shareholders OC. To store stock certificates to be used for convertible bonds O D. To provide for scheduled redemptions of outstanding bonds Mark for review (Will be highlighted on the review page)

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