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:

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Informative Headings

Titles that steer readers towards a specific perspective on a subject.

Subheadings

Subtitles that serve as subordinate elements under main headings, signifying smaller divisions within a larger section.

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An embellishment or enhancement added to something to make it more attractive or interesting.