Bonds That Can Be Redeemed at Par at the Option

question 129

Multiple Choice

Bonds that can be redeemed at par at the option of their holders either at specific date after the date of issue and every 1 to 5 years thereafter or when and if the firm takes specified actions such as being acquired, acquiring another company, or issuing a large amount of additional debt are called ________.

• A) zero coupon bonds
• B) junk bonds
• C) floating-rate bonds
• D) putable bonds

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Definitions:

Corporate Codes

Guidelines and principles that outline ethical standards, corporate governance, and social responsibility expected within a corporation.

Enforcement Mechanism

Procedures or methods used to enforce compliance with laws, regulations, or agreements.

Collective Bargaining

The process by which employers and unions negotiate terms of employment, including wages, hours, and working conditions.

Government Regulations

Rules and directives created by government agencies to control or guide specific industries or activities.