Protective Covenants

question 33

Multiple Choice

Protective covenants:

• A) apply to short-term debt issues but not to long-term debt issues.
• B) only apply to privately issued bonds.
• C) are a feature found only in government-issued bond indentures.
• D) only apply to bonds that have a deferred call provision.
• E) are primarily designed to protect bondholders.

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Definitions:

Closing Thought

A final comment or conclusion that wraps up the preceding content, providing closure or a takeaway for the audience.

Good-News Message

Communication that delivers positive, favorable, or beneficial information to the recipient.

Routine Claims

Standard requests or complaints made by customers regarding products or services.

Accusatory Tone

A manner of speaking that implies blame or holds someone responsible for something in a negative way.