Which of the Following Is a Reason Why Lenders Insist

question 130

Multiple Choice

Which of the following is a reason why lenders insist on bond indentures?

• A)To ensure that bond-issuing companies prefer debt financing to equity financing
• B)To ensure that lenders of rights are comparable to the rights of stockholders
• C)To make the bonds easy to sell in secondary markets
• D)To ensure that bond-issuing companies do not accept risky projects

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