Bond covenants usually restrict the borrowers rights in various ways. An example might be a restriction that

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Bond covenants usually restrict the borrower’s rights in various ways. An example might be a restriction that no additional long-term debt could be issued unless the debt-to-total assets ratio was below .50. Who benefits from such a covenant? How?

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Introduction to Financial Accounting

ISBN: 978-0133251036

11th edition

Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick

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