A Bond Provision That Specifies Payments the Issuer Must Make

question 8

Multiple Choice

A bond provision that specifies payments the issuer must make to redeem a given percentage of the outstanding issue prior to maturity is known as

• A) Call provision
• B) Indenture
• C) Collateralization
• D) Sinking fund
• E) Collateral trust bond

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Definitions:

Transactions

The act of conducting business or other dealings between parties whereby goods, services, or something of value is exchanged.

Depositary Bank

A financial institution that holds and manages the securities of a company, facilitating the exchange of securities and ensuring compliance with the regulations.

Check Collection

The process where banks handle checks from the moment they are deposited until the funds are credited to the depositor's account and debited from the check writer's account.

Payment

The act of giving money or other compensation to settle a debt or obligation.