Which of the Following Statements Is FALSE Regarding a 'Call

question 56

Multiple Choice

Which of the following statements is FALSE regarding a 'call provision'?

• A)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.
• B)The issuer can repurchase a fraction of the outstanding bonds in the market or it can make a tender offer for the entire issue.
• C)A call provision allows the issuer to repurchase the bonds at a predetermined price.
• D)The call price is generally set at or below, and expressed as a percentage of, the bond's face value.

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