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Which of the Following Statements Is Not Correct

Question 8

Multiple Choice

Which of the following statements is not correct?


A) A bond is a certificate allowing the division of a debt between large numbers of investors,each of whom can contribute only a small amount of the debt.
B) If the face value of a bond is important,it makes this lending instrument accessible to a large public.
C) The bond or certificate shows the evidence of the claim held by the bondholder.
D) In the aggregate the bond issue may represent a very large amount of borrowed funds to cover all or part of the company's financing needs.

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