Businesses May Be Prepared to Incur a Loss on the Defeasance

Businesses may be prepared to incur a loss on the defeasance of debt because:

A) It increases the certainty that the debt will be paid.
B) It is a means of eliminating the restrictive effects of any associated debt covenants.
C) It provides future reserves of assets that may be drawn upon when needed.
D) It increases the certainty that the debt will be paid and it provides future reserves of assets that may be drawn upon when needed.
E) None of the given answers.