Multiple Choice
In order to determine if, in substance, a complex financial instrument is debt, the answer should be yes to all of the following except:
A) Is the debtor legally obligated to repay the principal at the option of the creditor?
B) Is the debtor legally obligated to repay the principal at a fixed rate?
C) Is the amount convertible into common shares?
D) Is the periodic return on capital obligatory?
Correct Answer:
Verified
Correct Answer:
Verified
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