(Solved): There are about 2,045 reasons a firm might want to consider including covenants in its bonds/loans, ...

There are about 2,045 reasons a firm might want to consider including covenants in its bonds/loans, but here's a big one: It is always beneficial (i.e., raises firm value) for the firm to include binding covenants in a bond/loan agreement, as these protect the bondholder and lower the cost of debt. (Binding covenants means that it restricts the actions the firm can take). Answer 0 for False Answer 1 for True