Call provisions typically require bond issuers to pay


1. Call provisions typically require bond issuers to pay investors an amount greater than the par value, called

call premium

sinking fund

refunding operations

call protection

2. If a warrant is attached to a bond,

the bondholder has a right, not an obligation, to sell the bonds back to the issuer at a stated price

the bondholder has a right, not an obligation, to buy the issuing firm's stock at a predefined price

the issuer has a right to convert the bonds to a predefined number of shares of its stock at a pre-determined date

the bond holder has a right, not an obligation, to convert his/her bonds into shares of the issuing firm's common stock at a fixed price

none of the above

3. A convertible bond gives:

the bondholder the right, not an obligation, to sell the bonds back to the issuer at a stated price

the bond holder has a right, not an obligation, to buy the issuing firm's stock at a predefined price

the issuer has a right to convert the bonds to a predefined number of shares of its stock at a pre-determined date

the bond holder has a right, not an obligation, to convert his/her bonds into shares of the issuing firm's common stock at a fixed price

none of the above

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Financial Management: Call provisions typically require bond issuers to pay
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