Question

Bond issuance must be____________.A. approved by the board of directors.B. terms are set forth in a legal document called a bond indenture.C. contractual interest rate is also referred to as the stated rate.D. all of the answer choices are correct.

Answer 1

D. all of the answer choices are correct.

Step-by-step explanation:

the board of directors decides for the most important decision of the company As bonds sually will represent a long-term financing which a considerable weight in the capital structere iof the company they will decidwe the amount and terms of the bond.

Also, the firm will sing a contract which is called bond indenture with the bondholders to guarantee it will respect the condition.

the contractual interest is the coupon rate, nominal rate or stated rate of the bond it is fixed through the life of the bond unless, specify otherwise.