ncome bonds pay interest only if the issuing company actually earns the indicated interest. Thus, these securities cannot bankrupt a company, and this makes them safer from an investor's perspective than regular bonds. a. True b. False

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10 December, 19:07

ncome bonds pay interest only if the issuing company actually earns the indicated interest. Thus, these securities cannot bankrupt a company, and this makes them safer from an investor's perspective than regular bonds. a. True b. False

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Adam Mills · Answer 1

False

Explanation:

"Income bonds pay interest only if the issuing company actually earns the indicated interest. Thus, these securities cannot bankrupt a company, and this makes them safer from an investor's perspective than regular bonds." is a false statement.

Income bonds make interest payments only to the bond holders and at the end when maturity arrives, all the principle payment is paid pack. These payments are not fixed and are based on the sufficient earning of the company that deemed necessary, therefore they vary.