Final answer:
The contractual document containing restrictive covenants that limit the borrower's activities while a bond is outstanding is called a bond indenture.
Step-by-step explanation:
The contractual document containing restrictive covenants that limit the borrower's activities while a bond is outstanding is called a bond indenture.
A bond indenture is a legal agreement between the issuer of the bond (borrower) and the bondholders (lenders).
The bond indenture stipulates the terms and conditions of the bond, including the repayment schedule, interest rate, and any restrictive covenants that the borrower must abide by while the bond is outstanding.