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:

DfB

Degrees of Freedom Between groups, referring to the number of independent values in the calculation of variance between the different groups under study.

DfWG

Degrees of Freedom Within Groups, a statistical concept used in variance analysis to describe the number of independent pieces of information that went into the estimate of variability.

Critical Value

The threshold value that a test statistic must exceed to reject the null hypothesis in a statistical test.

Df

Abbreviation for degrees of freedom, indicating the number of values in a final calculation of a statistic that are free to vary.