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A protective covenant:
a. guarantees the market price of a bond will never be less than par value.
b. limits the actions of the borrower.
c. protects the borrower from unscrupulous practices by the lender.
d. prevents a bond from being called.
e. guarantees the interest and principal payments will be paid in full on a timely basis.

Respuesta :

amirmeeka

Answer:

B. Limits the actions of the borrower.

Explanation:

A protective covenant is a kind of loan covenant that limits the borrower from taking certain activities in the entire term of the loan to secure the lender's advantage.

Answer:

B. Limits the actions of the borrower.

Explanation:

A protective covenant is a kind of loan covenant that limits the borrower from taking certain activities in the entire term of the loan to secure the lender's advantage.

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