Which of the Following Statements Is False

question 33

Multiple Choice

Which of the following statements is false?

• A) The registered bond system also facilitates tax collection because the government can easily keep track of all interest payments made.
• B) Asset backed bonds and mortgage bonds are secured debt: Specific assets are pledged as collateral that bondholders have a direct claim to in the event of bankruptcy.
• C) Notes typically have longer maturities (more than ten years) than debentures.
• D) Although the word "bond" is commonly used to mean any kind of debt security, technically a corporate bond must be secured.

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