Characteristics of bonds Which of the following is true about bonds? Multiple Choice Some bonds are collable, which means those bonds may be converted to other securties, such as common stock A company is legally required to pay interest and repay the principal to bond investors, whereas a company is not legally required to pay dividends to stockholders A company is legally required to pay interest and repay the principal to bond investors, whereas a company is not legally required to pay dividends to stockholders Some bonds have a convertible feature that allows the issuing company to retire the bonds early, before the maturity date None of the other choices is correct When a company needs cash it may choose to issue bonds rather than stock because control of the company is diluted when issuing bonds