Question
Regarding the bond indenture, which one of the following description is True ? A. Dividend restrictions limit the amount of dividend the bond holders can
Regarding the bond indenture, which one of the following description is True?
A. | Dividend restrictions limit the amount of dividend the bond holders can receive from the firm | |
B. | Convertible bond gives the issuer an option to exchange the bond for a specified number of shares of common stock of the firm | |
C. | With sinking fund provisions, the issuer may repurchase a fraction of the outstanding bonds in the open market each year | |
D. | With subordination of future debt provisions, the issuers ability of raising future debt is strictly prohibited, Hence, no further borrowing is allowed for the issuer |
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