Which of the Following Is NOT True Regarding the Call

question 70

Multiple Choice

Which of the following is NOT true regarding the call provision?

• A)It typically requires a firm to pay a price above par value when it calls its bonds.
• B)The difference between the market value of the bond and the par value is called the call premium.
• C)A principal use of the call provision is to lower future interest payments.
• D)A principal use of the call provision is to retire bonds as required by a sinking-fund provision.
• E)A call provision is normally viewed as a disadvantage to bondholders.

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Definitions:

Transactional Leadership Approaches

Leadership styles focused on the supervision, organization, and group performance, based on a system of rewards and penalties for achieving specific goals.

Trait Approaches

Trait approaches in psychology propose that individual personalities are composed of broad dispositions, and that these traits influence behavior.

Behavioral Leadership Approaches

Theories focusing on the observable behaviors of leaders and how these behaviors influence their effectiveness in guiding and motivating others.

Administrative Leadership Approaches

Methods or strategies used by leaders in organizational settings to influence and direct the management and administration processes.