Bond Indentures Include Restrictive Covenants

question 93

Multiple Choice

Bond indentures include restrictive covenants.These provisions protect the bondholders against ________.

• A) increase in inflation rate
• B) increase in borrower's risk
• C) decrease in liquidity risk
• D) maturity risk

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Definitions:

Microchip

A small semiconductor device containing electrical circuits, used in a wide variety of electronic equipment and devices.

Trade

The action of buying, selling, or exchanging goods and services between people, firms, or countries.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.

International Trade

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