Which is not a bond covenant?

Question

Quizplus · Accepted Answer

Specifying a minimum level of taxation is not a bond covenant, as it is related to the issuer's tax obligations and not directly related to the terms of the bond contract. A bond covenant is a term or condition of a bond contract that is designed to protect the interests of bondholders and to ensure that the issuer meets its obligations to the bondholders. Examples of bond covenants include making periodic deposits into a sinking fund, retiring a portion of the bond issue periodically, and specifying a minimum level for the times interest earned ratio.

Which Is Not a Bond Covenant