Question
Asked Oct 14, 2019
Protective covenants protect:
 
Group of answer choices
A. the investor from interest rate risk.
B. the company in case of default.
C. bond investors from adverse actions by the company.
D. bond investors whose bonds are called by the company.
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Expert Answer

Step 1

A protective convenant is a part of a bond indenture (legal contract or loan agreement). The scope and responsibilities of lender, borrower and the trustee are specified i...

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