A Call Feature in a Bond Allows the Issuer the Opportunity

question 63

True/False

A call feature in a bond allows the issuer the opportunity to repurchase bonds at a stated price prior to maturity. This option has a greater chance of being exercised (to the detriment of the bondholder) if market interest rates have fallen since the bond was issued.

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Definitions:

Percent

A unit of measure used to express a proportion or a fraction of a whole, represented as a part of one hundred.

Price Support Program

Government interventions to stabilize or increase market prices of commodities, usually through direct payments, purchases, or loans to producers.

Wheat Price

The cost at which wheat is bought or sold in the market, which can be influenced by factors such as weather conditions, supply and demand, and global economic trends.

Wheat Farmers

Individuals or entities engaged in the cultivation and production of wheat as an agricultural product.