Which of the following statements is FALSE?
A) Asset-backed bonds and mortgage bonds are secured debt: Specific assets are pledged as collateral that bondholders have a direct claim to in the event of bankruptcy.
B) The registered bond system also facilitates tax collection because the government can easily keep track of all interest payments made.
C) Although the word 'bond' is commonly used to mean any kind of debt security; technically, a corporate bond must be secured.
D) Notes typically have longer maturities (more than 10 years) than debentures.
Correct Answer:
Verified
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