"In-Substance Defeasance" Is a Term Used to Refer to an Arrangement

question 49

Multiple Choice

"In-substance defeasance" is a term used to refer to an arrangement whereby

• A) a company gets another company to cover its payments due on long-term debt.
• B) a governmental unit issues debt instruments to corporations.
• C) a company provides for the future repayment of a long-term debt by placing purchased securities in an irrevocable trust.
• D) a company legally extinguishes debt before its due date.

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