American_Bankers_Association

CTFA · Question #301

Protective covenants are:

The correct answer is D. To protect bondholders. See the full explanation below for the reasoning.

Fiduciary and Trust Activities

Question

Protective covenants are:

Options

ATo protect employees
BTo protect the interest of the company
CTo protect shareholders
DTo protect bondholders

How the community answered

(31 responses)

A
6% (2)
B
3% (1)
C
16% (5)
D
74% (23)

Topics

#protective covenants#bondholder protection#bond indenture#debt agreements

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