With bond covenants, a bank represents the bondholders to ensure the bond issuer respects the indenture's provisions.

Name: With bond covenants, a bank represents the bondholders to ensure the bond issuer respects the indenture's provisions.
Brand: Quizplus
Rating: 4.9 (53 reviews)

Question

Quizplus · Accepted Answer

Bond covenants are conditions in the bond indenture agreement between the bond issuer and the bondholders, but a trustee, not necessarily a bank, represents the bondholders to ensure compliance with these provisions.

With Bond Covenants, a Bank Represents the Bondholders to Ensure