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The rules and regulations imposed on bondholders and bond issuers are called ____________?

Bond covenants are legally binding terms and conditions included in a bond agreement to protect the interests of both the issuer and bondholders. These may include restrictions on additional debt, dividend policies, and asset sales.... Read More

1 FINANCE MCQS

The rules and regulations imposed on bondholders and bond issuers are called ____________?

  • Bond covenants
  • Private covenants
  • Federal covenants
  • Expansion covenants
Correct Answer: A. Bond covenants

Detailed Explanation

Bond covenants are legally binding terms and conditions included in a bond agreement to protect the interests of both the issuer and bondholders. These may include restrictions on additional debt, dividend policies, and asset sales.

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