Which one of the following statements is true?
A) Corporate bonds do not have a maturity date.
B) The maturity dates for corporate bonds are generally less than a year.
C) Corporate bonds do not have any default risk.
D) Corporate bonds are a form of equity.
E) Long-term corporate bonds have maturities over 15 years.

Question

Quizplus · Accepted Answer

Long-term corporate bonds typically have maturities greater than 15 years. A) is incorrect as all bonds have a maturity date. B) is incorrect as the maturity dates for corporate bonds vary, but are typically longer than a year. C) is incorrect as all bonds have some level of default risk. D) is incorrect as corporate bonds are a form of debt, not equity.

Which One of the Following Statements Is True