Which One of the Following Is Not a Bond Provision

question 73

Multiple Choice

Which one of the following is not a bond provision?

• A) Pledging financial assets as collateral to the bond issue.
• B) Limiting dividend payments to equity holders.
• C) Limiting payments to other existing bondholders.
• D) Pledging equipment as collateral for the issue.

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Definitions:

Obligation

A legal or financial duty to make a payment or fulfill a contract.

Futures Contracts

Financial contracts obligating the buyer to purchase an asset, or the seller to sell an asset, at a predetermined future date and price.

Bushels Of Wheat

A measure of volume used primarily in agriculture, equivalent to approximately 35.24 liters, often used to quantify wheat production or trade.