A Company May Call a Bond If

question 12

Multiple Choice

A company may call a bond if

• A)interest rates have risen
• B)interest rates have fallen
• C)the company's dividend is increased
• D)the company's dividend is decreased

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Definitions:

Lessor

A person or entity that rents out property or equipment to another party, known as the lessee, under the terms of a lease agreement.

Lessee

A person or entity that leases or rents property or equipment from another, known as the lessor.

Patent

A legal document granted by the government giving an inventor exclusive rights to make, use, and sell an invention for a certain period of years.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset from the time of its acquisition until a specified reporting date.