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What Is an Advantage of a Loan Covenant to the Borrower

Question 11

Multiple Choice

What is an advantage of a loan covenant to the borrower?


A) Greater security against risk exposure.
B) Greater clarity with respect to repayment terms.
C) A more appealing debt issue to the lender.
D) Increased opportunity for subordinate loans.
E) The option for early loan repayment.

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