Some bonds allow the issuing company to retire the bond with cash at any time. These bonds are known as:
A) convertible bonds.
B) bonds with a loan covenant.
C) callable bonds.
D) senior bonds.

Question

Quizplus · Accepted Answer

Callable bonds give the issuing company the option to retire the bond with cash at any time, usually after a specified period. Convertible bonds can be converted into a specified number of shares of the issuing company's stock, while bonds with a loan covenant have specific terms and conditions for repayment. Senior bonds have priority over other types of bonds in the event of default.

Some Bonds Allow the Issuing Company to Retire the Bond