Callable Bonds Give the Issuer the Option to Retire Them

question 71

True/False

Callable bonds give the issuer the option to retire them at a stated dollar amount prior to maturity.

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Definitions:

Drawee

The drawee is the party, usually a bank, required to pay the monetary amount stated on a draft or check upon its presentation.

Nonnegotiable

Unable to be bought, sold, exchanged, or transferred to another party.

Express Contract

A clearly stated agreement between parties, with terms explicitly mentioned either orally or in writing.

Commodities

Commodities are raw materials or agricultural products that can be bought and sold, such as gold, oil, or grains.