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Which of the Following Statements Is True of Bonds

Question 66

Multiple Choice

Which of the following statements is true of bonds?


A) Long-term bonds issued by corporations usually mature five years after issuance.
B) Unlike dividends on stock, a firm does not have a legal obligation to pay interest on bonds.
C) When a bond's market price is below par value, it is selling at a discount.
D) Bondholders cannot sell their bonds to other investors before they mature.

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