The Call Feature of a Long-Term Bond

question 58

Multiple Choice

The call feature of a long-term bond

• A) is an optional retirement provision
• B) states the call price
• C) allows the issuer to replace a high coupon bond with one with a lower coupon bond
• D) all the above are correct

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Definitions:

Direct Replacement

The process of substituting an existing item with another that directly takes its place without modification or significant adjustment.

Newline Character

A special character in text used to represent the end of a line of text and the start of a new one, typically denoted as '\n' in many programming languages.

Blank Space

A character in text representing an absence of visible marks, typically used for spacing between words or components.