Explain why bond issuers might voluntarily choose to put restrictive covenants into a new bond issue. A. Bondholders benefit from restricting covenants because they can obtain a lower interest rate. B.Bond issuers benefit from placing restricting covenants because by doing so they can obtain a higher interest rate. C.Bondholders benefit from restricting covenants because they can obtain a higher interest rate. D.Bond issuers benefit from placing restricting covenants because by doing so they can obtain a lower interest rate.
