An agency problem may exist between bondholders and stockholders

because stockholders prefer that the firm engage in higher risk, higher expected rate of return business activities, as compared to bondholders

		because bondholders prefer that the firm engage in higher risk, higher expected rate of return business activities, as compared to stockholders
		bondholders enjoy limited-liability from the corporation's debts while stockholders do not
		stockholders enjoy limited-liability from the corporation's debts while bondholders do not