Which of the following about bonds is false? OA Higher bond rating indicates higher probability of default. OB. An indenture is the legal agreement between the firm issuing the bond and the trustee who represents the bondholders. OC.Call protection period where the firm cannot call the bond for a specified period of time. OD.A mortgage bond is secured by a lien on real property. OE. Both A and B.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which of the following about bonds is false?
OA. Higher bond rating indicates higher probability of default.
OB. An indenture is the legal agreement between the firm issuing the bond and the trustee who represents the bondholders.
OC.Call protection period where the firm cannot call the bond for a specified period of time.
OD.A mortgage bond is secured by a lien on real property.
OE. Both A and B.
Transcribed Image Text:Which of the following about bonds is false? OA. Higher bond rating indicates higher probability of default. OB. An indenture is the legal agreement between the firm issuing the bond and the trustee who represents the bondholders. OC.Call protection period where the firm cannot call the bond for a specified period of time. OD.A mortgage bond is secured by a lien on real property. OE. Both A and B.
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