Which One of the Following Is a Positive Protective Covenant

question 97

Multiple Choice

Which one of the following is a positive protective covenant that might be found in a bond indenture?

• A) Allows the company to repurchase the bond at a specific price.
• B) Outline the responsibilities of both the bond issuer and the bond holders.
• C) Protect bondholders from company actions that may endanger a bond's credit quality.
• D) Reduce the volatility of its price.
• E) All of the above.

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Definitions:

Secular Trend

A long-term pattern or trend observed in societal, economic, or environmental data over a significant period.

Higher Standard

An elevated or improved level of quality or excellence.

Developed Countries

Nations with advanced economies characterized by high industrialization, significant gross domestic product (GDP) per capita, and generally high standards of living.

Secular Trend

Long-term patterns or trends in society that occur over generations, often linked to changes in health, growth, or societal norms and structures.