There Are Consequences Associated with Not Paying Interest to Bondholders

There are consequences associated with not paying interest to bondholders. Which of the following apply? I. Not paying an interest payment automatically puts the company in default making the entire loan due.
II) Interest on debt is not required to be paid, but the corporation generally pays it for public relations reasons.

A) I only
B) II only
C) Both I and II
D) Neither I nor II

Correct Answer:

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