Which of the Following Would Describe a Callable Bond

question 10

Multiple Choice

Which of the following would describe a callable bond?

• A)Borrower has the right to pay off the bonds prior to due date.
• B)Borrower has the right to issue more bonds prior to due date of existing bonds.
• C)Borrower has the right to call off the interest payments on the bonds.
• D)Investor has the right to call off the interest payments on the bonds.

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Definitions:

Income From Operations

Earnings generated from a company's normal business activities, excluding revenues and expenses from non-operating activities.

Net Cash Flows

The difference between cash inflows and cash outflows in a business over a specific period, indicating the net amount of cash generated or used.

Payback Period

This is the duration required to recover the cost of an investment.

Income From Operations

The earnings generated from a company's regular, core business operations.