Would that eliminate the stockholder-bondholder conflict

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Your company has a large bond issue with an 8% coupon. Rather than a bunch of restrictive bond covenants, the bonds have one covenant that simply says if you change your corporate assets, your coupon rate increases to 10%. Would that eliminate the stockholder-bondholder conflict? Explain, being sure to explain what the stockholder -bondholder conflict is.

Reference no: EM131850189

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