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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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