Borrowers must not sell account receivables to generate cash because by doing so they could cause a long run shortage if the borrower uses the proceeds to meet current obligations
A long-term borrower faces fixed assets restriction with respect to liquidation, acquisition and encumbrance of the fixed assets
Borrowers are prohibited from additional long term borrowing or are required that any additional loans be subordinated to the current loans
Borrowers may not enter into certain types of leases to limit further financial obligations
The lender may prohibit salary increases for certain employees
Dana05 answered the question on July 15, 2019 at 15:26
- A positive covenant specifies what a borrower must do while a negative covenant specifies what a borrower must not do
(Solved)
A positive covenant specifies what a borrower must do while a negative covenant specifies what a borrower must not do
Date posted: July 15, 2019. Answers (1)
- What are the specifications of a positive covenant?(Solved)
What are the specifications of a positive covenant?
Date posted: July 15, 2019. Answers (1)
- What is a contractual covenant?(Solved)
What is a contractual covenant?
Date posted: July 15, 2019. Answers (1)
- What are the items included in the long term loan agreements?(Solved)
What are the items included in the long term loan agreements?
Date posted: July 15, 2019. Answers (1)
- A bond has a market price of 500 shillings. It promises to a coupon payment of 15% per annum at the end of each year...(Solved)
A bond has a market price of 500 shillings. It promises to a coupon payment of 15% per annum at the end of each year for two years. If the face value of the bond is 1000. Find the current yield to maturity
Date posted: July 15, 2019. Answers (1)
- What is the meaning of yield to maturity?(Solved)
What is the meaning of yield to maturity?
Date posted: July 15, 2019. Answers (1)
- What is bond valuation?(Solved)
What is bond valuation?
Date posted: July 15, 2019. Answers (1)
- Give the definition of fixed income securities (Solved)
Give the definition of fixed income securities
Date posted: July 15, 2019. Answers (1)
- State the three main participants in the derivatives market (Solved)
State the three main participants in the derivatives market
Date posted: July 15, 2019. Answers (1)
- Briefly explain the factors affecting option prices (Solved)
Briefly explain the factors affecting option prices
Date posted: July 15, 2019. Answers (1)
- Briefly discuss the features of options (Solved)
Briefly discuss the features of options
Date posted: July 15, 2019. Answers (1)
- What are the problems that are associated with marking to the markets?(Solved)
What are the problems that are associated with marking to the markets?
Date posted: July 15, 2019. Answers (1)
- Distinguish between forwards contract and futures contract (Solved)
Distinguish between forwards contract and futures contract
Date posted: July 15, 2019. Answers (1)
- Differentiate between the long party and the short party in a futures contract (Solved)
Differentiate between the long party and the short party in a futures contract
Date posted: July 15, 2019. Answers (1)
- Describe the three main types of derivatives (Solved)
Describe the three main types of derivatives
Date posted: July 15, 2019. Answers (1)
- Highlight the characteristics of derivatives (Solved)
Highlight the characteristics of derivatives
Date posted: July 15, 2019. Answers (1)
- Give the uses of derivatives (Solved)
Give the uses of derivatives
Date posted: July 15, 2019. Answers (1)
- What are derivatives?(Solved)
What are derivatives?
Date posted: July 15, 2019. Answers (1)
- Give the definitions of base rate (Solved)
Give the definitions of base rate
Date posted: July 15, 2019. Answers (1)
- Describe loans and receivables as financial instruments(Solved)
Describe loans and receivables as financial instruments
Date posted: July 15, 2019. Answers (1)