Which of These Statements About Corporate Bonds Is Correct

question 246

Multiple Choice

Which of these statements about corporate bonds is correct?

• A) Bonds provide equity financing.
• B) Issuing new bonds dilutes the existing ownership in the firm.
• C) Interest paid to bondholders represents a tax-deductible business expense.
• D) Debenture bonds require assets pledged as collateral.

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Definitions:

Social Norms

Unwritten rules or standards of behavior that are considered acceptable in a group or society.

Cross-Sectional Perspectives

Analyses or observations made at a single point in time, often used to compare different population groups simultaneously.

Mutual Constitution Model

A concept in social science that suggests individuals and their social contexts are mutually influencing each other over time.

Classical Conditioning Model

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, leading to a learned response.