A Company Often Exercises the Call Provision of a Bond

question 371

True/False

A company often exercises the call provision of a bond if it's available when prevailing interest rates fall below the interest rate currently being paid to bondholders.

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Definitions:

Insurer

A company or entity that provides insurance policies to protect against financial losses.

Deductible

A fixed dollar amount that must be paid by the insured before additional expenses are covered by an insurer.

Liability Insurance

A type of insurance that covers injuries caused by the insured or injuries that occurred on the insured’s property.

Insured

Covered by insurance, offering protection against financial loss or damage.