A Call Provision for the Redemption of Bonds

question 1

Multiple Choice

A call provision for the redemption of bonds:

• A) requires an advance payment of future interest to the bondholders.
• B) allows the firm to refinance debt.
• C) allows the firm to call the bonds for redemption after one year of maturity.
• D) requires the redemption of the bonds at their market price.
• E) requires bondholders to convert their bonds into lower coupon rate bonds.

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