A Callable Bond

question 93

Multiple Choice

A callable bond:

• A)can be paid off early at either the issuer's or the bondholder's request.
• B)can be redeemed early if the bondholder so requests.
• C)can have its maturity date extended by the issuer.
• D)can be redeemed by the issuer prior to maturity.
• E)is a bond that pays a variable interest payment.

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Definitions:

Current Liabilities

Financial obligations a company owes and is due to pay within a year.

Total Current Assets

The sum of all assets expected to be converted into cash within one year.

Accounts Receivable

Money owed to a company by its debtors for goods and services that have been delivered but not yet paid for.

Current Liabilities

Financial obligations or debts of a business that are due to be paid within one year.