Two Common Ways for the Issuing Corporation to Retire Bonds

question 159

True/False

Two common ways for the issuing corporation to retire bonds before maturity are to (1)exercise a convertible option or (2)purchase them on the open market.

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Definitions:

Lab

A laboratory, often a room or building equipped for scientific experimentation, research, or teaching.

Profit-Sharing Program

A company policy where employees receive a share of the company's profits, typically distributed as bonuses or retirement funds.

Flexible/Medical Savings Account

A type of savings account that allows individuals to set aside pre-tax money for eligible healthcare expenses.

401(k)

A retirement savings plan sponsored by an employer that allows workers to save and invest a piece of their paycheck before taxes are taken out.