16.7 Refer to the selfish strategy in section 16.5. Suppose the bondholders are fully aware of the discrepancy between maximizing the firm value and the stock value. To minimize the agency costs, bondholders use a bond covenant to stipulate that when the firm takes on high-risk projects, bondholders can demand a higher debt payment. By how much would the bondholders need to raise the debt payment so that the stockholders would be indifferent between the two projects? What is the corporate finance implication of this postulated example?