Income bonds are unusual.Interest payments on these types of bonds may be skipped or deferred if the firm's income is insufficient to make the payments.In what way are these bonds like preferred stock? Why might a firm choose to issue an income bond instead of a preferred stock?

Question

Quizplus · Accepted Answer

The Answer of Income bonds are unusual.Interest payments on these types of bonds may be skipped or deferred if the firm's income is insufficient to make the payments.In what way are these bonds like preferred stock? Why might a firm choose to issue an income bond instead of a preferred stock?

Income Bonds Are Unusual