15-9 International bond finance is more likely to be rescheduled than international loan finance because of the relatively fewer lenders involved with a loan finance issue.

Question

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This statement is incorrect. In fact, international bond finance is less likely to be rescheduled compared to international loan finance due to the larger number of lenders involved in a bond issue. The bondholders have more diverse interests, and it is more difficult to get them to agree on a restructuring plan. This is why bonds are generally considered less flexible financing options compared to loans.

15-9 International Bond Finance Is More Likely to Be Rescheduled