The Items Included in an Indenture That Limit Certain Actions

question 72

Multiple Choice

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

• A)trustee relationships.
• B)bylaws.
• C)legal bounds.
• D)"plain vanilla" conditions.
• E)protective covenants.

---

Definitions:

Normal Rate

A standard or usual level of financial return on investment or interest on loans.

Supply

The total amount of a product or service that is available to consumers at a given price over a specific period.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of the industry at various prices.