(Q. 28 IN B) WHICH OF THE FOLLOWING IS CORRECT ABOUT CORPORATE DEB...

22. (Q. 28 in B) Which of the following is correct about corporate debt? A) The risk of default is measured by bond ratings, with the higher the rating the lower the risk of default B) Because debt holders do not own the firm, they normally have a voting power C) Since interest is an obligation, it cannot be treated as an expense and therefore cannot be deducted from taxable income D) The fund established to retire the debt before its maturity date is called a mutual fund