Multiple Choice
Which of the following is NOT a characteristic of long-term debt?
A) Interest paid to bondholders is a tax-deductible expense to the firm.
B) The firm is not legally required to pay interest to bondholders.
C) It usually has a specific maturity.
D) Its holders have a fixed claim on the firm's assets in the event of bankruptcy.
Correct Answer:
Verified
Correct Answer:
Verified
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