What Is a Call Provision

question 61

Multiple Choice

What is a call provision?

• A) the periodic repurchasing of issued bonds through a sinking fund by the issuer
• B) an option to the issuer to repurchase the bonds at a predetermined price
• C) the option for the bondholder to convert each bond owned into a fixed number of shares of common stock
• D) a clause in a bond contract that restricts the actions of the issuer that might harm the interests of the bondholders

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Definitions:

Operations Management

The administration of business practices aimed at ensuring maximum efficiency within a company, focusing on managing processes that transform inputs into outputs.

Executive Compensation

The total of all benefits, perks, and salary provided to top-level management and company executives, reflecting their role and responsibilities.

Resource Acquisition

The process of identifying, obtaining, and managing resources needed by an organization for its operations.

Craft Shop

A small-scale workshop or business focused on the production of handmade arts, crafts, or specialty items.