Clauses in the Indenture Agreement That Limit the Actions of a Bond

question 272

Multiple Choice

Clauses in the indenture agreement that limit the actions of a bond issuer as a safeguard for bondholders are referred to as _____ and include such features as _____.

• A) Deferred clauses; a conversion feature
• B) Deferred clauses; a restriction on issuing new debt
• C) Protective covenants; a call provision
• D) Protective covenants; a restriction on the sale of company assets
• E) Protective covenants; a floating interest rate

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Definitions:

GDP

Gross Domestic Product is the total value, either in market or monetary terms, of all the consumable goods and services produced within a country's area in a determined period.

Real GDP

Real GDP refers to the total economic output of a country, adjusted for price changes or inflation, representing the actual value of goods and services produced over a specific period.

GDP

Summarizing the value of all final goods and services made within a country's borders in monetary or market terms during a specific time frame is what Gross Domestic Product is about.

GDP Deflator

A metric that assesses the prices of all new, internally produced final goods and services in an economic system, employed in the adjustment of nominal GDP to real GDP.