Bonds That Give the Issuer an Option of Retiring Them

question 87

Multiple Choice

Bonds that give the issuer an option of retiring them before they mature are known as:

• A) Convertible bonds.
• B) Callable bonds.
• C) Serial bonds.
• D) Registered bonds.
• E) Debentures.

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Definitions:

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business, used to assess the company's liquidity, financial flexibility, and overall financial health.

Interest Expense

Costs incurred by an entity for borrowed funds, typically presented as a line item on the income statement.

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventories.