A protective covenant in a bond indenture:   Group of answer choices A. protects the borrower from unscrupulous practices by the lender. B. Gives the borrower the right to repay the bond early if interest rates decrease. C. limits some actions of the borrower that could hurt the investors. D. guarantees that a bond will be repaid in full with interest at maturity.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 2MC: A debenture is ________. A. the interest paid on a bond B. a type of bond that can be sold back to...
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A protective covenant in a bond indenture:
 
Group of answer choices
A. protects the borrower from unscrupulous practices by the lender.
B. Gives the borrower the right to repay the bond early if interest rates decrease.
C. limits some actions of the borrower that could hurt the investors.
D. guarantees that a bond will be repaid in full with interest at maturity.
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