GFOA Exam CPFO Topic 10 Question 58 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 58
Topic #: 10

[All CPFO Questions]

The indenture includes all these covenants that protect the beholder EXCEPT:

ARate covenant

BDebt service reserve covenant

CFlow of funds covenant

Dnone of these

Show Suggested Answer

Suggested Answer: D

by Kiley at Sep 18, 2022, 05:41 AM

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Eden

2 months ago

Ah, the beholder, the overlord of the bond market! I kid, I kid. Seriously though, I think the answer is A. The rate covenant is the one that doesn't apply to the beholder's protection.

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Nieves

11 days ago

I'm not sure, but I believe none of these covenants are excluded from the indenture.

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Johna

15 days ago

I think it's actually the flow of funds covenant that is not part of the protection for the beholder.

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Michel

1 months ago

I agree with you, the rate covenant is not included in the indenture.

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Goldie

2 months ago

Ah, the beholder, the all-seeing eye of the financial world! Jokes aside, I think the answer is D. The indenture definitely includes those covenants to protect the bondholders, not the beholder.

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Vashti

6 days ago

D is the right choice, as the indenture is focused on safeguarding the bondholders' interests.

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Daniel

9 days ago

The covenants are crucial for bondholders, and D covers all the necessary protections.

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Corinne

20 days ago

Yes, the indenture is designed to protect the bondholders, so D is the correct answer.

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Gaynell

2 months ago

I agree, the answer is D. The indenture includes all those covenants to protect the bondholders.

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Ruthann

2 months ago

Hmm, I'm pretty sure the indenture includes all those covenants to protect the bondholders, not the beholder. I'll go with A, rate covenant, as the EXCEPT option.

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Talia

28 days ago

User 2: I agree. I'll go with A, rate covenant, as the EXCEPT option.

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Anastacia

1 months ago

User 1: I think the indenture includes all those covenants to protect the bondholders.

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Bernardo

2 months ago

Wait, the beholder? Isn't that a monster from Dungeons & Dragons? I think the correct answer is D, none of these. This question is clearly not about fantasy creatures, but financial covenants.

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