If a Bond Covenant Is Not Met, Then the Bond

question 51

True/False

If a bond covenant is not met, then the bond goes into technical default and the bondholder can demand immediate repayment or force the company to renegotiate the terms of the bond.

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Definitions:

Influential Person

An individual whose actions, thoughts, or presence has a significant impact on others or on society at large.

Fuzzy Set

A concept in mathematics and social sciences describing a set of elements with degrees of membership rather than a clear boundary between members and non-members.

Vividness

An intrinsic property of a stimulus on its own that makes it stand out and attract attention.

Salience

Property of a stimulus that makes it stand out in relation to other stimuli and attract attention.