Bond covenant

Definition:

A contractual provision in a bond indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Expected future return

The return that is expected to be earned on an asset in the future. Also called the expected return.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio