CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

The main difference(s) between positive and negative covenants is (are) ______
A. A positive covenant is one you must not do while a negative covenant must be carried out.
B. Actions that you must do regularly versus periodically.
C. A positive covenant is one you must do while a negative covenant is to limit actions the firm can take.

User Contributed Comments 2

User Comment
morek Think of "positive" or "negative" from the perspective of the issuer, not the bondholder.
soorajiyer Yes positive is "must do" and negative is what "must not do"!!
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