Question: Protective covenants prevent bond issuers from irresponsible overborrowing behavior and are offered for the benefit of: A. common shareholders. B. preferred shareholders. C. bondholders. D.

Protective covenants prevent bond issuers from irresponsible overborrowing behavior and are offered for the benefit of:

A. common shareholders.

B. preferred shareholders.

C. bondholders.

D. both common and preferred shareholders.

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