Clauses that specify the rights of the bondholders and any actions that the issuer is obli- gated to perform or is prohibited from performing are:
A) covenants.
B) collaterals.
C) credit enhancements.

Question

Quizplus · Accepted Answer

Clauses that specify the rights and obligations of bondholders and issuers are known as covenants. Collaterals are assets pledged as security for repayment of the bond and credit enhancements are measures that improve the creditworthiness of the issuer.

Clauses That Specify the Rights of the Bondholders and Any