Every Bond Is Issued with a Call Feature

question 88

Essay

Every bond is issued with a call feature. Explain what it means for a bond to be "called," then briefly describe the three most common types of call features. Also explain why investors suffer when bonds are called.

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Definitions:

Doric Frieze

The part of the entablature in Doric architecture that lies between the architrave and the cornice, usually decorated with metopes and triglyphs.

Side Colonnades

Rows of columns placed at the sides of buildings or courtyards, often supporting a structure or used for decorative purposes in classical architecture.

Porta Marzia

An ancient Etruscan gate located in Perugia, Italy, notable for its monumental structure and sculptural decorations, dating back to the 3rd century BCE.

Etrusco-Roman

Pertaining to the cultural, art, and historical amalgamation characteristics observed between the Etruscans and the Romans.