The value of the target firm's bonds goes down when a leveraged buyout is announced.

Name: The value of the target firm's bonds goes down when a leveraged buyout is announced.
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A leveraged buyout typically involves taking on a significant amount of debt to finance the acquisition of a target firm. This increased debt load can raise concerns among bondholders about the firm's ability to make timely payments on its bonds, which can cause the value of the bonds to decline.

The Value of the Target Firm's Bonds Goes Down When