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Which of the Following Is a Reason Why Lenders Insist

Question 44

Multiple Choice

Which of the following is a reason why lenders insist on bond indentures?


A) To ensure that bond-issuing companies prefer debt financing to equity financing
B) To ensure that lenders of rights are comparable to the rights of stockholders
C) To make the bonds easy to sell in secondary markets
D) To ensure that bond-issuing companies do not accept risky projects

Correct Answer:

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