SIE practice questioneasyCorporate Bonds
An investor purchases a corporate bond in the secondary market. Which entity is responsible for making interest payments to the bondholder?
- AThe transfer agent
- BThe broker-dealer
- CFINRA
- DThe issuing corporation✓ Correct answer
Explanation
Why D — The issuing corporation
The issuing corporation is responsible for making interest payments to bondholders. Broker-dealers facilitate trades, FINRA is a regulator, and transfer agents handle registration of ownership.
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