Which of the following is not a characteristic of long-term debt?
A)interest paid to bond holders is a tax-deductible expense to the firm
B)firm is not legally required to pay interest to bond-holders
C)usually has a specific maturity
D)all of these are characteristics of long-term debt

Question

Quizplus · Accepted Answer

Long-term debt typically has a specific maturity and interest paid to bondholders is tax-deductible to the firm. However, the firm is legally required to pay the interest to bondholders, making option B the correct answer.

Which of the Following Is Not a Characteristic of Long-Term