Which of the following is not a reason why bonds are considered safer than most other types of securities?
A)The annual income received is flexible
B)The contracted-for loan principal is likely to be repaid in full at the stated date
C)Should bankruptcy occur,bondholders have priority in receiving the proceeds from liquidation of business assets
D)All of the above are reasons why bonds are considered safer
E)None of the above is a reason why bonds are considered safer

Question

Quizplus · Accepted Answer

The annual income received from bonds is typically fixed, not flexible. The other options listed are valid reasons why bonds are considered safer than most other types of securities.

Which of the Following Is Not a Reason Why Bonds