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2. (Stockholder-debtholder conflict) A bond covenant is a legal agreement between bond issuer and holder. It often restricts or forbids the issuer from undertaking some

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2. (Stockholder-debtholder conflict) A bond covenant is a legal agreement between bond issuer and holder. It often restricts or forbids the issuer from undertaking some specific activities. Suppose there is no covenants in bonds of Home Depot Inc. How would Home Depot bondholders be hurt if Home Depot unexpectedly merges with AT&T

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