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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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