Question $6$

$5$ pts

There are about $4,723$ reasons a firm might want to consider including covenants in its bonds$/$loans$,$ but here's a big one: It is always beneficial $($i$.$e$.,$ raises firm value$)$ for the firm to include binding covenants in a bond$/$loan agreement, as these protect the bondholder and lower the cost of debt. $($Binding covenants means that it restricts the actions the firm can take$).$

Answer $0$ for False

Answer $1$ for True