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Which of the following statements is CORRECT? A company's bond rating is affected by its financial ratios but not by provisions in its indenture. Under
Which of the following statements is CORRECT?
A company's bond rating is affected by its financial ratios but not by provisions in its indenture.
Under Chapter of the Bankruptcy Act, the assets of a firm that declares bankruptcy must be liquidated, and the sale proceeds must be used to pay off claims against it according to the priority of the claims as spelled out in the Act.
All else equal, secured debt is more risky than unsecured debt.
The expected return on a corporate bond must be greater than its promised return if the probability of default is greater than zero.
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