Finance · Bonds and Debentures
Which of the following statements is NOT true regarding a corporate bond?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1When the company makes losses, paying interest on the bond is not mandatory to the bondholders.✓
- 2It has a specified maturity period.
- 3It promises a fixed interest payment to the holder.
- 4A bond is a fixed income security.
Correct answer
When the company makes losses, paying interest on the bond is not mandatory to the bondholders.
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