Which of the Following Describes a Callable Bond

question 11

Multiple Choice

Which of the following describes a callable bond?

• A) The borrower has the right to pay off the bonds prior to the due date.
• B) The borrower has the right to issue more bonds prior to the due date of existing bonds.
• C) The investor has the right to delay the interest payments on the bonds.
• D) The investor has the right to call off the interest payments on the bonds.

---

Definitions:

Market Value

The existing rate at which an asset or service might be sold or acquired in the trading space.

Replacement Cost

The current cost of replacing an asset with a new asset of similar kind and quality, often used in insurance and accounting.

Cost Of Completion

The estimated expenses that are yet to be incurred to complete an ongoing project or to bring an asset to its intended use.

Market Value

The present cost at which a service or asset is available for purchase or sale in a market setting.