Which of the Following Statements Concerning Bonds Are Correct

question 25

Multiple Choice

Which of the following statements concerning bonds are correct?
I.Bonds provide tax benefits to issuers.
II.The risk of a firm financially failing increases when the firm issues bonds.
III.Most long-term bond issues are referred to as unfunded debt.
IV.All bonds are treated equally in a bankruptcy proceeding.

• A)II and III only
• B)I and II only
• C)III and IV only
• D)II and IV only
• E)I, II, and III only

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