Why do bonds often inchude covenants? A) To reduce information asymmetry B) To reduce moral hazard C) To compensate for value-added services. D) To ensure repayment of the bond. 1.12 |??: For a $100,000 trade payable with terms of 2/10, net 45, how much would be reported as purchase discount lost" under the gross method if a payment was made after 60 days? A) SO B) $2,000 C) S4,500 D) $10,000 1.13 ??: What is firm commitment underwriting? A) Broker's guarantee of the price to the borrower B) Broker sells as much of the debt issue as possible. C) Debt that is backed by specific collateral D) Feature that permits the borrower to redeem before maturity 1.14