Which of the following are negative covenants that might be found in a bond indenture?

Which of the following are negative covenants that might be found in a bond indenture? I. The company shall maintain a current ratio of 1.10 or better. II. No debt senior to this issue can be issued. III. The company cannot lease any major assets without approval by the lender. IV. The company must maintain the loan collateral in good working order.    A.  I and II only B.  II and III only C.  III and IV only D.  II, III, and IV only E.  I, II, and III only Refer to section 7.2

54.

Protective covenants:    A.  apply to short-term debt issues but not to long-term debt issues. B.  only apply to privately issued bonds. C.  are a feature found only in government-issued bond indentures. D.  only apply to bonds that have a deferred call provision. E.  are primarily designed to protect bondholders. Refer to section 7.2

55.

Which one of the following statements concerning bond ratings is correct?    A.  Investment grade bonds are rated BB or higher by Standard & Poor's. B.  Bond ratings assess both interest rate risk and default risk. C.  Split rated bonds are called crossover bonds. D.  The highest rating issued by Moody's is AAA. E.  A "fallen angel" is a term applied to all "junk" bonds. Refer to section 7.3

56.

A "fallen angel" is a bond that has moved from:    A.  being publicly traded to being privately traded. B.  being a long-term obligation to being a short-term obligation. C.  having a yield-to-maturity in excess of the coupon rate to having a yield-to- maturity that is less than the coupon rate. D.  senior status to junior status for liquidation purposes. E.  investment grade to speculative grade. Refer to section 7.3