What are the conditions imposed on a debt issuer that are designed to protect bondholders called?
A) Collateral agreements
B) Vanilla wrappers
C) Protective covenants
D)Default provisions

Question

Quizplus · Accepted Answer

Protective covenants are conditions imposed on a debt issuer that are designed to protect bondholders. Collateral agreements relate to specific assets that are pledged as security for the bond issue, while vanilla wrappers are a term used to describe a basic, uncomplicated financial instrument. Default provisions address what happens if the issuer fails to make timely payments on the bond.

What Are the Conditions Imposed on a Debt Issuer That