Maintaining a current ratio of 1.5 or better while ensuring the loan collateral in good working order is an example of a positive covenant.
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Q4: Failure to pay either the interest payments
Q5: A sinking fund is used to pay
Q6: Call provisions are included in the bond
Q7: A call provision, unlike a sinking fund,
Q8: Debt can be subordinated to equity.
Q10: For two bonds identical but for coupon,
Q11: All else the same, if interest rates
Q12: All else equal, the market value of
Q13: The call premium generally starts at 10%
Q14: Maintaining a current ratio of 1.5 or
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