Which of the following statements is false with respect to bonds?
A)Firms issue bonds in very large single issues.
B)Bonds must be held until maturity by the initial investor.
C)The denomination of the bond is usually referred to as the face value.
D)Bonds that are not backed by specific collateral of the issuing company are known as debenture bonds.

Question

Quizplus · Accepted Answer

Bonds can be sold in the secondary market before maturity, so they do not necessarily have to be held until maturity by the initial investor.

Which of the Following Statements Is False with Respect to Bonds