答案和详解如下： 1.Which of the following bond covenants is considered negative? A) Payment of taxes. B) No additional debt. C) Maintenance of collateral. D) Reporting requirements. The correct answer was B) Negative covenants set forth limitations and restrictions, whereas positive (affirmative) covenants set forth activities that the borrower promises to do.
2.Which of the following contains the overall rights of the bondholders?
A) Covenant. B) Trustee. C) Indenture. D) Rights offering. The correct answer was C) Covenants are part of the indenture. The trustee acts as a representative of the bondholders. A rights offering describes an equity offering—not fixed income.
3.Which of the following is NOT a negative bond covenant?
A) Current ratio of at least 2.25. B) Restriction on asset sales. C) No additional borrowing. D) Credit rating must be investment grade. The correct answer was A) Current ratio covenants are positive (borrower promises to perform) versus all others listed (prohibitions on the borrower).
4.Which of the following is an example of a positive covenant? The company:
A) must not use the same collateral to back more than one debt obligation. B) may not sell fixed assets that have been pledged as collateral for the bonds. C) must maintain a times interest earned ratio of at least two times. D) cannot borrow any additional money unless the new debt is subordinated to the current debt. The correct answer was C) Positive covenants specify what the company must do, negative covenants specify what they must not do. All other alternatives are examples of negative covenants. | 
发表于 2008-4-7 10:54
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