WordTechGuru Issues Bonds with a Call Provision, Which Allows Them

question 11

Multiple Choice

WordTechGuru issues bonds with a call provision, which allows them the option to pay off all or part of their bonds before the maturity date. Assuming WordTechGuru is like most companies whose bonds have a call provision, which of these statements best describes the WordTechGuru's call provision?

• A)The call provision will list call dates and prices.
• B)The call provision will likely list call dates, but without prices specified until closer to those dates.
• C)The call provision will be adjusted as to dates and prices at any time after issue, but before the maturity date.
• D)The call provision will likely have a single stated buyback price, regardless of the date it is called.

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Definitions:

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An example that contradicts or disproves a statement or theory.

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