Multiple Choice
A debt covenant
A) serves to give assurance to a creditor that the debtor will have the ability to pay interest and principal at maturity.
B) serves to give assurance to the debtor that the interest rate is reasonable.
C) allows the creditor to become an owner of the company if the covenant is violated.
D) allows the debtor to forego any interest on the debt.
Correct Answer:
Verified
Correct Answer:
Verified
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