Back to Assignment Attempts Do No Harm/3 3. More on the characteristics of bonds Based on the descriptions given in the followng table, identify the type of bond that best matches each description: Type of Bond Description Bonds that offer a lower coupon rate than the market interest rate for a similar bond at the time of issue Bonds that pay coupons in the form of additional bonds Suppose you invested in company As bonds and the company used a large amount of that debt to acquire another tim. (Such a deal is called a leveraged buyout.) This deal led to significant losses for bondholders and had a negative impact on the firm's credit risk In such a situation, the company's bond rating es likely to bonds will the yield to maturity will and the value of its outstanding Due to the impact that sudden events could have in the value of bonds, event rok covenants, or provisions, are included in the issuance of some corporate bonds This covenant allows the bondholder to turn in, or put, a bond back to the issue of the bond at par ifa takeover, merger or a major change in the company's capital structure were to cut such a bond is called a make whole Gill provision