Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)With registered bonds,on each coupon payment date,the bond issuer consults its list of registered owners and mails each owner a check (or directly deposits the coupon payment into the owner's brokerage account).
• B)If a coupon bond is issued at a discount,it is called an original issue discount bond.
• C)The face value or principal amount of the bond is denominated in standard increments,most often $10,000.
• D)In a public offering,the indenture lays out the terms of the bond issue.

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Definitions:

Bonds

Fixed-income securities that represent a loan made by an investor to a borrower, typically used by corporations, municipalities, states, and governments to finance projects and operations.

Stock Exchange

A stock exchange is a marketplace where securities, such as stocks and bonds, are bought and sold, facilitating capital exchange between investors and companies.

Demand

The desire, willingness, and ability of consumers to purchase goods or services at a given price.

Junk Bond

A high-risk, high-yield bond issued by companies considered to be at greater risk of defaulting on their debt obligations.