Bond investors may lose considerable market value of their bonds if the company that issued them becomes the target of a leveraged buyout. The covenant intended to protect bond investors in LBOs is ______.

A. change of control call
B. change of control put
C. limitations on additional indebtedness

Correct Answer: B

This covenant gives investors reassurance that they can sell their bonds back to the company for essentially 100% of face value if the company gets bought out. If they didn't have such a provision and the company became the target of a LBO, the only way they might be able to unload their bonds would be for less than 100% of face value.