With respect to debt offerings and credit agreements, which of the following statements is correct?

Select one:

a. The call feature allows a company to buy back its bonds before expiration.

b. One major difference between bank loans and bonds is that loans are governed by covenants whereas bonds are not.

c. Violating loan covenants leads to default, which automatically leads to bankruptcy proceedings and possibly, but not always, to the liquidation of the company.