Most Corporate Bonds Have a Call Provision That Enables the Issuer

question 46

Multiple Choice

Most corporate bonds have a call provision that enables the issuer to ___ the bond before maturity.

• A) redeem
• B) default on
• C) sell
• D) reissue

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Definitions:

Private Property Rights

An owner’s right to use, rent, or sell resources or property.

Natural Monopolies

Industries where a single firm can provide a good or service at a lower cost than any potential competitor, often due to high infrastructure or barrier to entry costs.

Price Stability

The economic condition in which prices in the economy do not change significantly in either direction and remain relatively stable.

Government Transfer Program

Programs through which governments redistribute income, typically from taxpayers to individuals in need, such as welfare, social security, and unemployment benefits.