What Is a Call Provision

question 12

Multiple Choice

What is a call provision?

• A) the periodic repurchasing of issued bonds through a sinking fund by the issuer
• B) the option for the bondholder to convert each bond owned into a fixed number of ordinary shares
• C) a clause in a bond contract that restricts the actions of the issuer that might harm the interests of the bondholders
• D) an option to the issuer to repurchase the bonds at a predetermined price

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Definitions:

Sensory Overload

A condition where one or more of the body's senses experiences overstimulation from the environment.

Yielding

The act of giving in or surrendering to a force, argument, or influence.

Inoculation

A psychological technique used to make individuals resistant to attempts to change their attitudes or beliefs by exposing them to small doses of arguments against their position.

Psychological Reactance

The emotional response in opposition to a restriction on personal freedoms or choices, leading to an urge to regain them.