12.

12. Which of the following is MOST FALSE about debt issued by corporations? a. A lease (long-term rental agreement) requires a fixed payment and so is similar to debt b. Investment grade bonds have higher credit ratings and lower default risk c. Convertible bonds allow the bondholder to exchange the bond for a predetermined number of shares of common equity d. Callable bonds may be repurchased prior to maturity at a specific price e. Subordinated debt is repaid before senior debt, in the event of bankruptcy