Restrictive provisions in bond indenture agreements are designed to protect bondholders and lessen the agency problems between bondholders and stockholders.

Question

Quizplus · Accepted Answer

Restrictive provisions in bond indenture agreements, such as limitations on dividend payments or asset sales, are intended to safeguard bondholders' interests and reduce the conflict between bondholders and stockholders.

Restrictive Provisions in Bond Indenture Agreements Are Designed to Protect