The Items Included in an Indenture That Limit Certain Actions

question 18

Multiple Choice

The items included in an indenture that limit certain actions of the issuer in order to protect a bondholder's interests are referred to as the:

• A) trustee relationships.
• B) bylaws.
• C) legal bounds.
• D) trust deed.
• E) protective covenants.

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Definitions:

Wealth Redistribution

The transfer of income, wealth, or property from certain individuals or groups to others by means of a social mechanism, such as taxation, charity, welfare, public services, land reform, monetary policies, or confiscation.

Firm Level

Pertains to policies, operations, or characteristics specific to an individual company or organization, as opposed to industry-wide or macroeconomic levels.

Profit-sharing Plan

Profit-sharing Plan is a company program that provides employees with a share in the profits of the business, usually distributed annually or quarterly.

Deferred Payment

A financial arrangement allowing for payment to be made at a later date instead of at the time of purchase or service rendered.