Bond Covenants Tend to Increase a Bond Issuer's Borrowing Costs

question 43

True/False

Bond covenants tend to increase a bond issuer's borrowing costs.

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Definitions:

Substantive Law

The set of laws that governs how members of a society are to behave, as opposed to procedural law which dictates how the legal system operates.

Correlative

Having a mutual relationship, where one thing corresponds with or is related to another.

Breaches

The failure to perform as stipulated by the terms of a contract, which may result in legal action and damages.

Agents of Socialization

Individuals, groups, or institutions that play a significant role in integrating people into social life by teaching norms, values, and skills.