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Clauses in the Indenture Agreement That Limit the Actions of a Bond

Question 291

Multiple Choice

Clauses in the indenture agreement that limit the actions of a bond issuer as a safeguard for bondholders are referred to as _____ and include such features as _____.


A) Deferred clauses; a conversion feature
B) Deferred clauses; a restriction on issuing new debt
C) Protective covenants; a call provision
D) Protective covenants; a restriction on the sale of company assets
E) Protective covenants; a floating interest rate

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