A Call Provision Gives Bondholders the Right to Demand, or "Call

question 19

True/False

A call provision gives bondholders the right to demand, or "call for," repayment of a bond.Typically, calls are exercised if interest rates rise, because when rates rise the bondholder can get the principal amount back and reinvest it elsewhere at higher rates.

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Definitions:

Scheme

A systematic plan or arrangement for attaining some particular object or putting a particular idea into effect.

Harry Harlow

an American psychologist best known for his maternal-separation and social isolation experiments on rhesus monkeys, which underscored the importance of caregiving and companionship in social and cognitive development.

Monkeys

Primates belonging to the infraorder Simiiformes, known for their agility, intelligence, and complex social behaviors.

Mary Ainsworth

An American-Canadian developmental psychologist known for her work on attachment theory.