Which of the following statements is true? For the issuer:
A)Interest paid on bonds is tax deductible.
B)Interest paid on bonds is not tax deductible.
C)Dividends paid to stockholders are tax deductible.
D)Bonds are assets.
E)Bonds always decrease return on equity.

Question

Quizplus · Accepted Answer

Interest paid on bonds is tax deductible for the issuer. This means that the issuer can reduce their taxable income by deducting the interest payments made on their bonds.

Which of the Following Statements Is True? for the Issuer