Bonds That Contain a Provision That Allows the Issuing Corporation

question 106

Multiple Choice

Bonds that contain a provision that allows the issuing corporation to buy back the bonds prior to the maturity date are called

• A)secured bonds.
• B)callable bonds.
• C)convertible bonds.
• D)debenture bonds.

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Definitions:

Indorsed in Blank

A signature on a negotiable instrument like a check, making it payable to whoever holds the instrument, without naming a specific endorsee.

Holder in Due Course

A party that has acquired a negotiable instrument in good faith and for value, granting them certain protections and rights under the law.

Bearer Instrument

A financial document that is not registered in the name of any owner and thus the physical holder has the right to the document's value or benefit.

Signature

A handwritten or digitally produced mark made by an individual to signify agreement, approval, or identity.