Actual default by a bond issuer occurs when the debtor ________.

Name: Actual default by a bond issuer occurs when the debtor ________.
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Question

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Actual default by a bond issuer occurs when the debtor fails to make interest payments. Violating debt covenants, failing to meet working capital ratio requirements, and allowing retained earnings balance to fall below required levels are all events that could potentially lead to default, but they do not constitute default on their own.

Actual Default by a Bond Issuer Occurs When the Debtor