Which of the Following Would Describe a Callable Bond

question 123

Multiple Choice

Which of the following would describe a callable bond?

• A)Borrower has the right to pay off the bonds prior to due date.
• B)Borrower has the right to issue more bonds prior to due date of existing bonds.
• C)Borrower has the right to call off the interest payments on the bonds.
• D)Investor has the right to call off the interest payments on the bonds.

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