A Deferred Call Provision Refers to The

question 33

Multiple Choice

A deferred call provision refers to the:

• A)open market price of a callable bond on a certain date.
• B)prohibition of a company from redeeming callable bonds prior to a certain date.
• C)prohibition of a company from ever redeeming callable bonds.
• D)seniority of callable bonds to noncallable bonds in the event of corporate default.
• E)amount by which the call price for a callable bond exceeds its par value.

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Definitions:

Safety Stock

Extra inventory kept on hand to mitigate the risk of stockouts due to uncertainties in supply or demand.

MRP

Stands for Material Requirements Planning, a system for calculating the materials and components needed to manufacture a product.

Finished Assemblies

Finished Assemblies are completed products that have been assembled from individual components and are ready for sale or use.

Pegging

In material requirements planning systems, tracing upward in the bill of material from the component to the parent item.