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Why do bond covenants restrict high risk investments by shareholders during financial distress? Multiple choice question. High risk projects tend to transfer wealth from the

Why do bond covenants restrict high risk investments by shareholders during financial distress? Multiple choice question. High risk projects tend to transfer wealth from the shareholders to the bondholders. High risk projects restrict conversion of convertible bonds. High risk projects tend to transfer wealth from the bondholders to the shareholders. High risk projects prevent exercise of call rights by bondholders

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