Why can bond covenants reduce a firm's borrowing costs?

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Fundamentals of Corporate Finance

ISBN: 978-0133400694

1st canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

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Question Posted: Mar 31, 2017 02:26 PM

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Why can bond covenants reduce a firm's borrowing costs?

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The stronger the covenants in the bond contract the less likely the firm will b...View the full answer

Fundamentals of Corporate Finance

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