When conflicts of interest exist,lenders impose higher interest rates to reflect greater default risk.
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Q5: Financial covenants establish minimum financial tests with
Q6: Some debt covenants preserve repayment capacity by
Q7: One way to reduce conflicts of interest
Q8: Contract terms can be designed to eliminate
Q9: Commercial lending agreements may contain provisions that
Q11: Debt covenants can be designed to serve
Q12: Debt covenants benefit creditors because the covenants
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Q15: When one party to a business relationship
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