Debt is a contractual obligation that:
A) requires the payout of residual flows to the holders of these instruments.
B) requires a repayment of a stated amount and interest over the period.
C) allows the bondholders to sue the firm if it defaults.
D) Both requires the payout of residual flows to the holders of these instruments; and requires a repayment of a stated amount and interest over the period.
E) Both requires a repayment of a stated amount and interest over the period; and allows the bondholders to sue the firm if it defaults.
Correct Answer:
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