A bond contract feature that allows the issuer to redeem


A bond contract feature that allows the issuer to redeem bonds under specified terms prior to maturity is called a:

Deferred call

Debenture

Protective covenant

Call provision

Sinking fund provision

When are issuers more likely to call an outstanding bond issue?

When interest rates are lower than they were when the bonds were issued

When interest rates are higher than they were when the bonds were issued

A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a:

Debenture

Protective covenant

Sinking fund provision

Call provision

Deferred call

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Financial Management: A bond contract feature that allows the issuer to redeem
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