Bonds that have an option giving the issuer the right to retire them at a stated dollar amount before maturity are known as:

A) Convertible bonds.
B) Sinking fund bonds.
C) Callable bonds.
D) Serial bonds.
E) Junk bonds.

Question

Hunter Steinmiller · Accepted Answer

Final Answer : C, Explanation :  Callable bonds have an option that allows the issuer to call or retire the bonds before their maturity at a specified price, known as the call price. This gives the issuer flexibility in managing its debt and interest expense.

Bonds that have an option giving the issuer the right to retire them at a stated dollar amount before maturity are known as:

A) Convertible bonds.
B) Sinking fund bonds.
C) Callable bonds.
D) Serial bonds.
E) Junk bonds.

Definitions

Learning Objectives

Learning Objectives

Related questions

Bonds that have an option giving the issuer the right to retire them at a stated dollar amount before maturity are known as:A) Convertible bonds.B) Sinking fund bonds.C) Callable bonds.D) Serial bonds.E) Junk bonds.

Definitions

Learning Objectives

Learning Objectives

Related questions

Bonds that have an option giving the issuer the right to retire them at a stated dollar amount before maturity are known as:

A) Convertible bonds.
B) Sinking fund bonds.
C) Callable bonds.
D) Serial bonds.
E) Junk bonds.