True or false? Briefly explain in each case.
a. It is better to hold unsecured bonds than secured bonds in the event of default.
b. Many new and exotic debt securities are triggered by government policies or regulations.
c. Call provisions give a valuable option to debt investors.
d. Restrictive covenants have been shown to protect debt investors when takeovers are financed with large amounts of debt.
e. Privately placed debt issues often include stricter covenants than public debt. However, public debt covenants are more difficult and expensive to renegotiate.