Question: What should a potential bondholder ( lender ) do to prevent a company ( borrower ) from taking on risky projects? Set strict covenants that

What should a potential bondholder (lender) do to prevent a company (borrower) from taking on risky projects?
Set strict covenants that the company cannot uphold if it chooses a risky project
Encourage manipulation of accounting procedures to optimize the company's profit Separate owners from management so their interests do not conflict
Release managers
What should a potential bondholder ( lender ) do

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