Call Provisions Usually Arise When the Issuing Company Wants the Option

question 158

Multiple Choice

Call provisions usually arise when the issuing company wants the option to:

• A)retire the bonds earlier than planned because it has more capital than it needs.
• B)require the retirement of bonds if market interest rates rise substantially above the coupon rate.
• C)retire high interest rate bonds replacing them with lower cost debt when interest rates drop.
• D)refund their debt because interest rates are escalating.

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Definitions:

Panel Interview

An interview in which a board of interviewers questions and observes a single candidate.

Interview Scores

Numerical or qualitative assessments derived from candidate interviews, used to evaluate and compare job applicants.

Selection Procedures

The methods and processes used by organizations to choose the most suitable candidates for a job from a pool of applicants.

Validity

The accuracy and reliability of a test or measurement.