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If a company goes bankrupt, how does the recovery process typically differ between bondholders and equity holders, and what impact does this have on their
If a company goes bankrupt, how does the recovery
process typically differ between bondholders and equity
holders, and what impact does this have on their
respective investment risks?
Both bondholders and equity holders have equa claim on assets,
sharing, the inyestment risk equally:
Bondoldels have firstclaimanassets, reducing the mingestment isk
Compared to equity holders.
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