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.