Bonds That Have an Option Exercisable by the Issuer to Retire

question 77

Multiple Choice

Bonds that have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity are known as:

• A) Convertible bonds.
• B) Sinking fund bonds.
• C) Callable bonds.
• D) Serial bonds.
• E) Junk bonds.

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Definitions:

Point-of-sale Terminals

Electronic systems used at retail locations to process card payments and manage sales transactions.

Preauthorized Payments

Financial transactions that are set up in advance to regularly move funds from one account to another, commonly used for recurring bills and subscriptions.

Magnetic Ink Character Recognition

A technology used to verify the legitimacy and facilitate the processing of checks and other documents, employing magnetic ink.

Special Ink

A unique form of ink used for specific purposes, such as security printing to prevent forgery or duplicity.