Which of the Following Is NOT a Typical Negative Bond

question 354

Multiple Choice

Which of the following is NOT a typical negative bond covenant?

• A) The firm must limit dividend payments.
• B) The firm cannot merge with another firm.
• C) The firm cannot issue additional long-term debt.
• D) The firm cannot allow its bond rating to fall below its initial level.
• E) The firm cannot pledge any assets to other lenders.

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Definitions:

Polarization

The division of opinions or attitudes into sharply opposed sides, often leading to heightened tensions and conflict.

Disrespected

Feeling undervalued or not shown proper consideration or courtesy by others.

Prioritize

To arrange or deal with in order of importance.

Paraphrase

Verbal summary of the key ideas of your partner’s message that helps you check the accuracy of your understanding.