Call Provisions on Corporate Bonds Are Generally Included to Protect

question 37

True/False

Call provisions on corporate bonds are generally included to protect the issuer against large increases in interest rates. They affect the actual maturity of the bond but not its price. 

---

Definitions:

Corporation

A legal entity distinct from its owners, offering limited liability to its shareholders, and capable of owning assets, incurring debt, and conducting business.

Partnership

A formally established business entity where two or more counterparts participate in managing the firm and splitting the profits.

Proprietorship

A form of business organization where a single individual owns and operates the business.

Liabilities

Financial obligations or debts owed by a business to another entity, payable in money, goods, or services.