Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Chapter 24.3, Problem 1CC
Summary Introduction

To discuss: The situation if an issuer fails to live up to a bond covenant.

Introduction: Covenants are the restrictive clauses in a bond contract that limit the issuer from taking actions that may weaken his ability to repay the bonds.

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