Question: 12. Protective covenants (select one) A) are designed to protect the issuer should it default. B) are primarily designed to protect bondholders from future actions

12. Protective covenants (select one)

A) are designed to protect the issuer should it default.

B) are primarily designed to protect bondholders from future actions of the bond issuer.

C) are consistent for all bonds issued by a corporation within the United States.

D) only apply to bonds that have a deferred call provision.

E) are limited to stating actions that a firm must take.

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