Which of the Following Statements Is Correct

question 158

Multiple Choice

Which of the following statements is correct?

• A)One disadvantage of zero coupon bonds is that the issuing firm cannot realize any tax savings from the debt until the bonds mature.
• B)Other things held constant, a callable bond should have a lower yield to maturity than a noncallable bond.
• C)Once a firm declares bankruptcy, it must then be liquidated by the trustee, which uses the proceeds to pay bondholders, unpaid wages, taxes, and lawyer fees.
• D)Income bonds must pay interest only if the company earns the interest. Thus, these securities cannot bankrupt a company prior to their maturity, and this makes them safer to the issuing corporation than "regular" bonds.

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Definitions:

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The capacity to comprehend and empathize with someone else's emotions.

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The capacity to understand or feel what another person is experiencing from within their frame of reference.

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Voluntary actions intended to benefit or help others, such as sharing, comforting, or rescuing.