
Explanation:
Correct answer: B. I and II
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Question 196.1. Consider the following statements with respect to a corporate bond’s maturity
I. A bond’s maturity is the date on which the issuer’s obligation to satisfy the terms of the indenture is fulfilled
II. On the bond’s maturity date, the principal is repaid with any premium and accrued interest that may be due
III. Neither the issuer nor the bondholder may alter the bond’s term to maturity; i.e., neither may alter the date when the indenture (contract) terminates
Which of the above statements is (are) TRUE?
A
I. only
B
I. and II.
C
II. and III.
D
All three