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Which of the Following Statements Is Correct

Question 117

Multiple Choice

Which of the following statements is correct?


A) For the corporation, interest paid on corporate bonds is not tax-deductible.
B) Bond financing is seldom used to pay for a corporation's ongoing business activities.
C) Bonds are a form of debt financing.
D) Bonds do not have to be repaid at maturity.
E) Interest payments to bond owners are at the discretion of the corporation.

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