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A bond has been issued with the following features included in the bond indenture, (i) a call provision, (ii) a note that the debt is
A bond has been issued with the following features included in the bond indenture, (i) a call provision, (ii) a note that the debt is subordinate to a previous bond issue by the firm and (iii) a positive covenant relating to the level of the firm's working capital. Explain the meaning of the above three features of this bond and comment on the advantages and disadvantages of these to the bond issuer and the bond holders
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