Question
What is the feature of a corporate bond that protects the purchaser of the bond from moral hazard problems on the part of the borrower?
What is the feature of a corporate bond that protects the purchaser of the bond from moral hazard problems on the part of the borrower?
| Call provision | ||
| Coupon payments | ||
| Conversion option | ||
| Restrictive covenants | ||
| all of the above |
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
6th International Edition
0071229035, 978-0071229036
