Which of the following statements regarding the attitude of equity holders toward bond covenants is true? (Choose the correct response.) A. Equity holders are often happy to include strong bond convenants because it reduces the likelihood of default and therefore reduces the required interest rate on the debt. B. Equity holders will be indifferent regarding the number and strength of bond convenants. Bond covenants are only of concern for bond holders. C. Equity holders will always strive to reduce the strength of bond covenants, because they limit the flexibility of equity holders and reduce their opportunities to transfer wealth from bond holders to equity holders. D. Equity holders are happy to include bond covenants that protect the interests of bond holders, as long as they do not impact on the flexibility of equity holders