Which one of these statements is correct?

Question

Quizplus · Accepted Answer

Bond registration statements are required to include an indenture, which is the contract between the issuer and the bondholders outlining the terms and conditions of the bond, including repayment terms and interest rate. Option A is incorrect because both equity and bond issues must be registered with the SEC. Option B is incorrect because the majority of debt is actually privately placed. Option D is incorrect because publicly issued debt often carries a lower interest rate due to the greater marketability and liquidity compared to privately issued debt. Option E is incorrect because term loans can have varying maturities depending on the agreement between the borrower and lender, although a minimum maturity of 5 years may be common for some types of term loans.

Which One of These Statements Is Correct