Why Do the Issuers of Bonds Seek to Increase the Strength

question 76

Multiple Choice

Why do the issuers of bonds seek to increase the strength and number of covenants in a bond agreement?

• A)Covenants favour the equity holders that managers work for.
• B)Covenants can increase the flexibility of the company issuing the bond.
• C)Covenants lower the interest rate investors will require to buy the bond.
• D)Covenants force the company to renegotiate the terms of the bond if they are broken.
• E)Covenants increase a firm's default risk.

Understand document security through presentation distribution methods.

Manipulate presentation views and layouts to effectively review content.

Understand the role and impact of policy advocates in securing resources.

Identify options and challenges in the effective implementation of policies.

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Definitions:

Wetland Species

Plants and animals specially adapted to live in wetland ecosystems, such as swamps, marshes, and bogs.

Non-targeted Species

Organisms that are unintentionally affected by human activities or control measures aimed at other species.

Human Activities

Actions by humans that affect the environment, economy, and society, ranging from agriculture and industry to recreation and urban development.

Large Catches

Large catches refer to the significant quantities of fish or other marine organisms captured at once by fishing operations, which can impact marine populations and ecosystems.