Question

Because a bond is a legal contract, what could happen if a borrower fails to meet their obligation?

a. The bond could be reevaluated by a rating agency.
b. The lender could then own the bond outright.
c. The borrower could be required to prepare an offering memorandum.
d. The borrower could face bankruptcy proceedings.

Answer 1

Answer:

d) The borrower could face bankruptcy proceedings.

Explanation:

legal bond is can be regarded as a bond that as a written agreement so that a specific act is performed, in this obligation of contract should be fulfilled. It should be noted that if a bond is a legal contract, and a borrower fails to meet their obligation, The borrower could face bankruptcy proceedings.