=5. The chapter discusses potential conflicts of interest between shareholders and bondholders. Some argue that bondholders can protect themselves against stockholder expropriation by writing bond covenants. Covenants are provisions in the loan contract requiring or prohibiting firm actions, such as prohibiting investments in certain industries or repurchasing shares. Well-written covenants, they argue, can eliminate any costs associated with conflicts between shareholders and bondholders. Do you agree? Why or why not?