Acorporation has posted a large financial loss for this year. it has a legal obligation to pay interest on all of the following bonds except: a. debenturesb. subordinated debenturesc. adjustment bondsd. equipment trust certificates

Adjustment bonds

Explanation:

A company offers an adjustment bond once it reorganizes its obligations to deal with financial hardships or possible bankruptcy. Holders of new, unpaid bonds offer improvement bonds throughout a redemption phase.

This problem enables the new bonds to simplify the outstanding debt.Adjustment loans have been an option to foreclosure when it is impossible for companies to make mortgage payments due to financial problems.

Adjustment bonds have a mechanism where interest charges only come when the corporation has profits. The corporation is not going into failure on unfinished fees. It essentially recapitalizes the outstanding balance commitments of the organization.

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