Which of the following is not a common restrictive covenant included in bond indentures to reduce risk to the investor?
A)Restrictions on increases in executive salaries
B)Restrictions on additional borrowing activities
C)Requirements that the names and addresses of the bondholders be registered with the bond issuer
D)Limitations on the payment of dividends

Question

Quizplus · Accepted Answer

In addition to requiring collateral,creditors often obtain additional protection by including restrictive covenants in loan agreements.Such covenants may restrict additional borrowing,limit dividend payments,or restrict salary increases.

Which of the Following Is Not a Common Restrictive Covenant