An analyst reviews a corporate bond indenture that contains these two covenants:1) The

An analyst reviews a corporate bond indenture that contains these two covenants:

1) The borrower will pay interest semi-annually

and principal at maturity.

2) The borrower will not incur additional debt if its debt/capital ratio is more than 50%.

What types of covenants are these？

A. Both are affirmative covenants.

B. Covenant 1 is negative and Covenant 2 is affirmative.

C. Covenant 2 is negative and Covenant 1 is affirmative.