Question: True or False 9.An indenture is a bond that is backed by good faith of the company. 10.Default risk is the risk that a company

True or False

9.An indenture is a bond that is backed by good faith of the company.

10.Default risk is the risk that a company can't make its' interest payments.

11.Subordinated debentures are higher order claimants (i.e. paid out earlier) compared to mortgage bond holders when there is a bankruptcy.

12. A put provision gives the investor the right but not the obligation to sell the bond back to the company.

14. The debenture statement is the legal document that establishes and characterizes a bond's features.

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