Does Covenants benefit bond issuers or bondholders? Why?

Question

Question

Answer 1

Answer #1

A Bond Covenant is a legal agreement between bond issuers and bondholders

It benefits bond holder because it stipulates certain guidelines to be followed by issuer to protect the bond holder.

It bars the issuer from undertaking certain activities

it also dictates the issuer to meet specific requirements.

Answer 2

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