Occasionally, the ability of an issuer to make interest and principal payments is seriously and unexpectedly changed by (1) a natural or industrial accident or some regulatory change, or (2) a takeover or corporate restructuring.

Question

Quizplus · Accepted Answer

This statement is true. Unexpected events such as accidents, regulatory changes, takeover, or restructuring can affect the ability of an issuer to make payments on their debt.

Occasionally, the Ability of an Issuer to Make Interest and Principal