Q. Upon violation of a covenant, which action most likely requires the approval of the owners of some minimum percentage of the principal amount of the bond issue?
- Calling for immediate repayment of the debt
- Waiving the covenant requirement
- Requiring a penalty payment or higher interest rate
Solution
A is correct. Bond contracts typically require that the decision to call for immediate repayment be made, on behalf of all the bondholders, by holders of some minimum percentage of the principal amount of the bond issue.
老师，这道题我虽然猜对了的。但是其实还不是不明白这题的含义，可以解答一下吗？谢谢
