Which of the following statements is true of bonds?

A. Long-term bonds issued by corporations usually mature five years after issuance.
B. Unlike dividends on stock, a firm does not have a legal obligation to pay interest on bonds.
C. When a bond's market price isbelow par value, it is selling at a discount.
D. Bondholders cannot sell their bonds to other investors before they mature.


Answer: C

Business

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