Which of the Following Statements Is False Regarding a Call

question 52

Multiple Choice

Which of the following statements is false regarding a call provision?

• A) The issuer can repurchase a fraction of the outstanding bonds in the market or it can make a tender offer for the entire issue.
• B) A call provision allows the issuer to repurchase the bonds at a predetermined price.
• C) The call price is generally set at or below, and expressed as a percentage of, the bond's face value.
• D) A call feature allows the issuer of the bond the right (but not the obligation) to retire all outstanding bonds on (or after) a specific date (the call date), for the call price.

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Definitions:

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