Please answer the following.

Answer choices for the first question are given.

Answer choices for the blank, "bondholders may require a..." (lower / higher)

Agency conflicts between shareholders and creditors Bondholders often employ a variety of devices-including restrictive covenants in the company's bond indenture agreements-to protect their interests and constrain the actions of shareholders and the firm's managers Which of the following are restrictive covenants often used to protect the firm's bond value and bondholder wealth? Check all that apply. Provisions that disallow the repurchase of stock or paying dividends unless profits and retained earnings are above specified amounts Provisions that require firing the firm's CEO whenever the firm's bond price decreases by more than 15% Provisions that prohibit reducing the firm's liquidity ratio below specified levels Provisions that prohibit the borrower from increasing debt ratios above specified levels In addition, potential bondholders may require a compensation for the risks that cannot be adequately protected against using the restrictive covenants interest rate on the firm's soon-to-be-issued bond as