The Call Feature of a Long-Term Bond _______

question 101

Multiple Choice

The call feature of a long-term bond _______.

• A) is an optional retirement provision
• B) states the call price
• C) allows the issuer to replace a high coupon bond with a lower coupon bond
• D) All of these are correct

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Definitions:

Labor

Work, especially physical, manual, or non-executive work, done in exchange for payment; also refers to the workforce or workers in general.

Materials

The substances or components used in the production of goods or in the execution of services.

Total Costs

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Variable Costs

Costs that vary directly with the level of production or output, for example, materials and labor costs used in manufacturing.