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Which of the Following Statements with Regards to Debentures Is

Question 71

Multiple Choice

Which of the following statements with regards to debentures is false?


A) Most debenture issues involve a fixed charge because a floating charge impedes the company's freedom to deal in its own assets.
B) Debenture holders rank as unsecured creditors on the portion of the financial obligations,on a fixed-charge debenture,that is not raised through the sale of the pledged assets.
C) The interest rates attached to a debenture issue normally remain unchanged for the life of the issue.
D) None of the given options.

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