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Which of the Below Statements Is FALSE

Question 9

Multiple Choice

Which of the below statements is FALSE?


A) The promises of corporate bond issuers and the rights of investors who buy them are set forth in great detail in contracts called bond indentures
B) A bond's indenture clearly outlines three important aspects: its maturity, its security, and its provisions for retirement.
C) The indenture is made out to the corporate trustee as a representative of the interests of bondholders; that is, the trustee acts in a fiduciary capacity for investors who own the bond issue.
D) A corporate trustee is a trust company with officers who are amateurs in performing the functions of a trustee.

Correct Answer:

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