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If a Bond Covenant Is Not Met, Then the Bond

question 51

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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.


Definitions:

Employee Resignation

The act of an employee voluntarily leaving their job and ceasing employment with their current employer.

Voluntary Redundancy

A financial incentive offered by an employer for employees to voluntarily leave their jobs, typically as part of cost-cutting measures or organizational restructuring.

Long Service Leave

An employee benefit that grants extended paid leave for those who have been employed for a long period with the same employer.

Projected Wages

An estimate of future wage payments based on current contracts, salary trends, and other factors affecting compensation over a defined period.

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