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:

ATC

Average Total Cost, which is the total cost of production divided by the number of goods produced.

Output

The total amount of goods or services produced by a company, industry, or economy within a specific period.

Marginal Study Time

The additional benefit or improvement in performance obtained from studying for one more unit of time.

Marginal Returns

The additional output or benefit received from producing one more unit of a good or service.