The "Call" Provision on Some Bonds Allows

question 126

Multiple Choice

The "call" provision on some bonds allows

• A) the bondholder to redeem the bond earlier than maturity, but usually involves a call premium.
• B) the corporation to request additional capital contributions from the bondholder.
• C) the corporation to redeem the bonds earlier than maturity but usually for a premium over the par value.
• D) the bondholder to convert the bond into preferred stock.

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Definitions:

Expression

An expression in mathematics is a combination of numbers, variables, operators, and sometimes parentheses that represents a value.

Solve

The process of finding the value(s) that satisfy an equation, inequality, or system of equations.

Solve

To solve an equation means to find all possible values of the variable that make the equation true.

Expression

A combination of symbols that represent a quantity or formula, which can include numbers, variables, and operation symbols.