Seattle Music, Inc., recently offered bonds for sale to the public. The unsecured corporate bond paid interest of 9% to investors for the twenty-year life of the bonds. Seattle Music is obligated to:
A) Represent each bondholder as an owner in the company.
B) Pay interest semi-annually.
C) Pay stockholders their dividends, before paying bondholders their interest.
D) Pay each owner their principal if and when they want to cash in their investment.
Correct Answer:
Verified
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