How can an investor request the courts to enforce a bond's terms of payment?
A) File for bankruptcy
B) Ask for an improved risk rating on the bond
C) File a bondholders' claim
D) Have the bond converted to stock
E) Have the bond converted to a mortgage-backed security

Question

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If the bond issuer fails to make a payment on the due date, bondholders can file a claim in court to seek enforcement of the bond's terms of payment. This involves providing evidence of the default and requesting legal action to recover the owed funds. Filing for bankruptcy (A) is not a way to enforce bond payment, as it would likely result in the bondholder receiving only a fraction of the owed amount. Asking for an improved risk rating on the bond (B) is not relevant to enforcing the bond's payment terms. Having the bond converted to stock (D) or a mortgage-backed security (E) would not help to address non-payment of the bond's principal and interest.

How Can an Investor Request the Courts to Enforce a Bond's