--%>
Assignment Help - homework help

Example of restrictive covenants given in a bonds indenture

Give an example of restrictive covenants that could be given in a bond’s indenture?

E

Expert

Verified

An indenture may have restrictions on:
a) Dividend payments
b) Limitations on future borrowings
c) Requirements that working capital will be maintained at some minimum level.

   Related Questions in Financial Management

  • Q : Explain swap broker Explain swap broker

    Explain swap broker ? A swap broker arranges a swap among two counterparties for fee without taking a risk position within the swap.  

    		•
  • Q : The cash budget and the capital budget

     Explain the cash budget and the capital budget relation to pro forma financial statements.

    		•
  • Q : Current income and common stockholders

    What is the meaning of statement: earnings available to common stock dividends paid from the current income and common stockholders statement affect the balance sheet item retained earnings.

    		•
  • Q : Inernational portfolio manangement 5.

    5. What are the factors responsible for the recent surge in international portfolio investment? plz explain in 20 marks

    		•
  • Q : Dealer's work in the OTC market What

    What does a dealer do in the OTC market? Financial trades are made in an over the counter market. Explain.

    		•
  • Q : Describe construction of special

    Describe how the special drawing rights (SDR) are constructed. Also, discuss the situation under which the SDR was build.SDR was created by the IMF in the year of 1970 as a new reserve asset, partially to alleviate the pressure on the U.S. dolla

    		•
  • Q : Trading at small figure bid-ask of 35-40

    A CD/$ bank trader is at present quoting a small figure bid-ask of 35-40, while the rest of the market is trading at CD1.3436-CD1.3441. What is implied regarding the trader's beliefs by his prices?The trader have to think the Canadian dollar wi

    		•
  • Q : Problem related to margin account

    Suppose today's settlement price on a CME DM futures contract is $0.6080/DM. You have a short position in one contract. Your margin account presently has a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.5989. Compu

    		•
  • Q : Determine value of put option with same

    Stock price is $98; and European call option struck at $100 along with an expiration of nine months has a value of $9.07. There nine-month, compounded continuously, interest rate is 4.5%. So find out the value of the put option with the same strike and expirat

    		•
  • Q : How much will transaction costs

    How much will transaction costs decrease the profit?

    		•