Which of the Following Statements Regarding Bonds Payable Is True

question 99

Multiple Choice

Which of the following statements regarding bonds payable is true?

• A)Generally, bonds are issued in denominations of $100.
• B)When an issuing company's bonds are traded in the "secondary" market, the company will receive part of the proceeds when the bonds are sold from the first purchaser to the second purchaser.
• C)A debenture bond is backed by specific assets of the issuing company.
• D)The interest rate in the bond contract is called the stated rate.

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Definitions:

Breach

The violation of a law, duty, or other form of obligation, including breaking a contract or agreement.

Duty

A moral or legal obligation to perform an action or uphold a standard of behavior.

Liability

The legal responsibility for one's actions or omissions, potentially resulting in the requirement to compensate for damage or loss.

Constructive Trust

An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property.