1. A call provision in a bond agreement grants the issuer the right to:
A. call the bondholder to determine if he or she would like to extend the term of the bond agreement.
B. change the coupon rate provided the bondholders are notified in advance.
C. replace the bonds with equity securities.
D. repurchase the bonds prior to maturity at a pre-specified price.
E. buy back the bonds on the open market prior to maturity.
Part 2
A note is:
A. any liability classified as short-term debt on a financial statement.
B. unsecured debt that is generally payable within the next ten years.
C. long-term debt secured by part, or all, of the assets of the borrower.
D. the formal agreement between a firm and its bondholders.
E. a formal loan secured by real estate.