(I)Restrictive covenants often limit the amount of dividends that firms can pay the stockholders.
(II)Most corporate indentures include a call provision,which states that the issuer has the right to force the holder to sell the bond back.

Question

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Restrictive covenants may impose conditions on the payment of dividends to stockholders. Most corporate bond indentures include a call provision, granting the issuer the right to recall the bonds and forcing the bondholder to sell them back.

(I)Restrictive Covenants Often Limit the Amount of Dividends That Firms