Which of the Following Statements Is Correct

question 43

Multiple Choice

Which of the following statements is correct?

• A) For the corporation, interest paid on corporate bonds is not tax-deductible.
• B) Bond financing is seldom used to pay for a corporation's ongoing business activities.
• C) Bonds are a form of debt financing.
• D) Bonds do not have to be repaid at maturity.
• E) Interest payments to bondholders are at the discretion of the corporation.