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What is a debt covenant? List and discuss three types of debt covenants. [3+6, 9 marks] 7.2 A corporations bonds have 12 years remaining to
What is a debt covenant? List and discuss three types of debt covenants. [3+6, 9 marks] 7.2 A corporations bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and a coupon interest rate of 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds? [6 marks]
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