The Call Feature Is Usually Advantageous to the Bondholder

question 70

True/False

The call feature is usually advantageous to the bondholder.
The call feature allows the issuer greater control over when to prepay and retire bonds. The ability to control holding the bond for longer periods up to maturity is removed from the bondholders, placing them at a disadvantage.

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Definitions:

Death

The termination of all vital biological activities that support a living being, signaling life's conclusion.

Grievous Losses

Refers to severe and deep losses that cause profound sorrow and distress.

Child

A young human being, usually under the age of puberty.

Grief Period

The duration of time during which an individual experiences intense sorrow and a range of emotional responses following the death of a loved one.