Bondholders Tend to Offset the Effects of Selfish Strategies Implemented

Multiple Choice

Bondholders tend to offset the effects of selfish strategies implemented by shareholders by:

A) restructuring their loans to provide additional time to the firm to make repayment.
B) subordinating their bankruptcy position to the shareholders.
C) agreeing to reduce the outstanding principal balances on their loans.
D) agreeing to reduce the interest rate on existing loans.
E) increasing the interest rate on monies loaned to the firm.