Restrictions placed on a company in their bond indenture agreement are known as:
A)collateral.
B)bond indenture.
C)bond covenants.
D)agreements.

Question

Quizplus · Accepted Answer

Bond covenants are restrictions placed on a company in their bond indenture agreement. Collateral refers to assets pledged as security for a loan, bond indenture is the legal contract between the issuer and bondholders, and agreements are too vague without further context.

Restrictions Placed on a Company in Their Bond Indenture Agreement