What Are the Various Provisions Within a Bond Indenture That

question 95

Multiple Choice

What are the various provisions within a bond indenture that are designed to protect bondholders by restricting the actions of the issuer called?

• A)restrictive actions
• B)prohibitions
• C)negative conditions
• D)protective covenants
• E)restrictive amendments

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Definitions:

Public Good

A good that is non-excludable and non-rivalrous, meaning no one can be effectively excluded from its use, and someone's use of it does not reduce its availability to others.

Airplane Seats

The seating arrangement within an aircraft, determining passenger capacity and comfort levels.

Rival in Consumption

A property of a good whereby one person's consumption of the good reduces the ability of another person to consume it.

Excludable

A characteristic of a good or service that allows owners or providers to prevent others from using it without paying.