Q244
Rules and regulations placed on bond holders and bond issuers are classified in
A.
bond covenants
AnswerB.
private covenants
C.
federal covenants
D.
expansion covenants
Answer: Option A
Solution
Answer: Option A
Solution:
Rules and regulations placed on bond holders and bond issuers are classified in bond covenants. Bond covenants are part of the legal documentation that makes up a bond, whether it is issued by a company or the government. They are usually intended to protect investors by providing some assurance on what the bond issuer will and won't do over the life of the bond.