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Consider the following statements about corporate bonds: (i) As the owners of a firms debt, bond holders play a key role in setting interest payments

Consider the following statements about corporate bonds:

(i) As the owners of a firms debt, bond holders play a key role in setting interest payments by the firm. (ii) Corporate bonds become worthless once a firms enters administration (bankruptcy).

Which of the following is correct?

Select one:

A. Both statements are true.

B. Both statements are false.

C. Statement (i) is true, but statement (ii) is false.

D. Statement (i) is false, but statement (ii) is true.

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