Question
What is the upper limit on payments to bondholders by the corporation regardless of the level of profits?
Multiple choice question.
The obligation due in terms of periodic interest payment
The obligation due in terms of interest and principal
The obligation due in terms of interest and principal plus a proportionate share of additional profits generated
The obligation due in terms of principal payment
Multiple choice question.
The obligation due in terms of periodic interest payment
The obligation due in terms of interest and principal
The obligation due in terms of interest and principal plus a proportionate share of additional profits generated
The obligation due in terms of principal payment
Answers
GPT-4o mini
The correct answer is:
**The obligation due in terms of interest and principal**
This option reflects the fixed obligations that a corporation has to bondholders, which include regular interest payments as well as the return of the principal at maturity, regardless of the corporation's profit levels.
**The obligation due in terms of interest and principal**
This option reflects the fixed obligations that a corporation has to bondholders, which include regular interest payments as well as the return of the principal at maturity, regardless of the corporation's profit levels.