Which of the Following Is True Concerning Bond Covenants

question 78

Multiple Choice

Which of the following is true concerning bond covenants?

• A)Bond covenants are restrictions placed on bondholders to protect rights of equity holders.
• B)Violation of a bond covenant requires that a company declares bankruptcy.
• C)If a company violates a bond covenant, it means it has failed to make interest or principal repayments on debt in a timely manner.
• D)Bond covenants are legal restrictions placed in order to minimize the risk of default on bonds.

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Definitions:

Research Hypothesis

An alternative to the null hypothesis, suggesting a significant difference or effect, that researchers aim to support through their findings.

Research Hypothesis

A specific, testable prediction about what you expect to happen in your study.

Inferential Statistics

The branch of statistics that makes predictions or inferences about a population based on a sample of data drawn from that population.

Probability

The measure or likelihood of a particular event or outcome occurring.