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One way that bond investors can limit management's ability to commit a bait and switch is to a . require higher coupon rates than the
One way that bond investors can limit management's ability to commit a bait and switch is to
a require higher coupon rates than the market rate of interest.
b write covenants in bond issues that prevent firms from investing in riskier projects than originally promised.
c purchase company stock instead of a company's bonds.
d sell their bonds immediately after discovering a company has committed a bait and switch strategy.
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