Which of the Following Statements Is Correct

question 26

Multiple Choice

Which of the following statements is correct?

• A)Adjustable rate convertible subordinated securities make the interest payments conditional on prior dividend payments.
• B)Income bonds pay out guaranteed and fixed coupons prior to common dividends.
• C)Original issue discount bonds (OIDs)sell at a discount when issued by firms.
• D)All of the above are correct.

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Definitions:

Non-Breaching Seller

A party in a contract that has not failed to fulfill any term of the agreement, in contrast to a breaching party who has failed to perform as promised.

Remedies

Remedies in legal terms refer to the means by which a right is enforced or the violation of a right is prevented, redressed, or compensated.

Essential Purpose

The main or critical reason for which something exists or is done, especially in a legal or contractual context.

Usage of Trade

A common practice or method of dealing recognized and accepted in a particular industry or trade.