Which of the following statements is (are) correct? (More than one statement may be correct.)
A) A bond issue is a technique for subdividing a very large loan into a great many small, transferable units.
B) Bond interest payments are contractual obligations, whereas the board of directors determines whether or not dividends will be paid.
C) As interest rates rise, the market prices of bonds fall; as interest rates fall, bond prices tend to rise.
D) Bond interest payments are deductible in determining profit subject to income taxes, whereas dividends paid to stockholders are not deductible.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is (are) correct? (More than one statement may be correct.)
A) A bond issue is a technique for subdividing a very large loan into a great many small, transferable units.
B) Bond interest payments are contractual obligations, whereas the board of directors determines whether or not dividends will be paid.
C) As interest rates rise, the market prices of bonds fall; as interest rates fall, bond prices tend to rise.
D) Bond interest payments are deductible in determining profit subject to income taxes, whereas dividends paid to stockholders are not deductible.

Which of the Following Statements Is (Are) Correct? (More Than