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:

Psychodynamic Therapy

A therapeutic approach emphasizing unconscious processes and past experiences in understanding and treating psychological disorders.

Biological Therapy

The use of physical and chemical procedures to help people overcome psychological problems.

Cognitive Therapy

A form of psychotherapy that emphasizes the important role of thinking in how we feel and what we do; it is focused on changing distorted thoughts to improve emotional response and behavior.

Catharsis

The reliving of past repressed feelings in order to settle internal conflicts and overcome problems.