Callable Bonds Have an Option Exercisable by the Issuer to Retire

question 91

True/False

Callable bonds have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity.

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Definitions:

World Financial Center

A term that may refer to a major financial district that houses large banks, stock exchanges, and financial institutions.

Partial State-Owned Enterprise

A company where the government owns a significant share but not complete ownership, allowing for the coexistence of private and state investment.

Joint Venture Firm

A business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance.

Sole Proprietorship

A company that is owned and run by just one person, with no legal separation between the owner and the business itself.