Which of the following statements is correct?
A)Adjustable rate convertible subordinated securities make the interest payments conditional on prior dividend payments.
B)Income bonds pay out guaranteed and fixed coupons prior to common dividends.
C)Original issue discount bonds (OIDs)sell at a discount when issued by firms.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the statements are correct. Adjustable rate convertible subordinated securities make the interest payments conditional on prior dividend payments. Income bonds pay out guaranteed and fixed coupons prior to common dividends. Original issue discount bonds (OIDs) sell at a discount when issued by firms.

Which of the Following Statements Is Correct