Which of the following statements is true?
A) A bond that has a rating of AA is considered to be a junk bond.
B) A bond will sell at a premium if the prevailing required rate of return is less than the bond's coupon rate.
C) A zero coupon is a bond that is secured by a lien on real property.
D) The legal document that describes all of the terms and conditions of a bond issue is called a debenture agreement.
Correct Answer:
Verified
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