-Briefly explain the following covenants and the type of conflicts that they are supposed to solve: 1. Restrictions on investments 2.Early warning covenants

- do some independent research and answer the following questions:

1.What is a negative pledge covenant? Should its inclusion increase or decrease the yield spread when the bond is issued? What is the difference between negative pledge and pari passu?

2.What is secured debt? Should it lower or increase the cost of borrowing? Does it limit asset substitution? Why or why not? Does it come at a cost (both actual out of pocket costs and opportunity cost)?