CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

Which covenant is intended to protect bondholders in the event of an acquisition?
A. Change of control put
B. Restricted payments
C. Limitations on additional indebtedness
Explanation: A change of control covenant means that if XYZ company gets taken over, bondholders have the option to put the bond back to the company at (at least) par value.

User Contributed Comments 0

You need to log in first to add your comment.