The restrictive covenants of a bond indenture are intended t

The restrictive covenants of a bond indenture are intended to protect the interest of ________:

Solution

Restrictive covenants are usually intended to protect the interests of bondholders\'.

An example of a restrictive covenant would be -

i) a limit imposed on the amount of dividends a firm can pay

ii) Limit amount of additional debt the firm can borrow

iii) Limit the firm\'s ability to enter into a merger agreement