Which of the following is a (are) positive covenant(s) that might be found in a bond indenture?
I.The company shall maintain a current ratio of 1.5 or better.
II.The company must limit the amount of dividends it pays according to the stated formula.
III.The company cannot lease any major assets without approval by the lender.
IV.The company must maintain the loan collateral in good working order.
A) I only
B) I and II only
C) I and IV only
D) II and IV only
E) I, II, and IV only
Correct Answer:
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