A Call Feature in a Bond Allows the Issuer the Opportunity

question 47

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 benefit of the bondholder) if market interest rates have fallen since the bond was issued.

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Definitions:

Serous Membrane

A thin membrane that covers internal body cavities and secretes a fluid that reduces friction from muscle movement.

Lungs

Paired respiratory organs situated within the chest, responsible for exchanging oxygen and carbon dioxide between the blood and air.

Sural Region

Pertains to the calf area of the leg, where the sural nerve is also located, providing sensory information.

Calf

The back portion of the lower leg in humans, or a young bovine animal.