Which One of the Following Provisions Prevents a Bond Issuer

question 63

Multiple Choice

Which one of the following provisions prevents a bond issuer from calling a bond simply because market interest rates have declined and the firm can now borrow at lower rates?

• A) negative pledge provision
• B) call provision
• C) convertible provision
• D) refunding provision
• E) refinancing provision

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Definitions:

Developing Countries

Nations with lower levels of industrialization, lower standards of living, and lower Human Development Index ratings compared to developed countries.

International Finance Corporation

A member of the World Bank Group, the IFC focuses on the private sector in developing countries, providing investment, advice, and asset management services to encourage economic development.

Private Enterprises

Businesses owned by individuals or groups, not by the state, operating for profit in a free market.