Q552
Protective covenant devised in market to reduce event risk and to control debt cost is classified as
A.
super poison covenant
B.
super poison put
AnswerC.
super poison call
D.
super poison redemption
Answer: Option B
Solution
Answer: Option B
Solution:
Protective covenant devised in market to reduce event risk and to control debt cost is classified as super poison put. Protective covenant. A part of an indenture or loan agreement that limits certain actions a company may take during the term of the loan to protect the lender's interests.