Which of the Following Is True

question 155

Multiple Choice

Which of the following is true?

• A) It is common for companies to both retire debt and issue new bonds in the same year as a way to replace higher interest rate debt with lower rate issuances.
• B) Payment of interest is an investing activity since we would not have interest unless we borrowed money or sold bonds to the public.
• C) Retractable bonds require cash out?ow connected to investing when the issuing corporation redeems the bonds.
• D) The corporation will have to pay cash to bond investors when those investors demand to call the bonds.

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