Callable bonds
A) can be converted into stock.
B) mature in series of payments.
C) can be redeemed by the issuer at any time at a specified price.
D) mature in total on a specified future date.

Question

Quizplus · Accepted Answer

Callable bonds can be redeemed (or "called") by the issuer at any time at a specified price. This gives the issuer the flexibility to pay off the bond early if they choose to do so, which can be beneficial if interest rates have dropped since the bond was issued. This feature is different from bonds that mature in series of payments (B) or mature in total on a specified future date (D). Convertible bonds (A) can be converted into stock, but this is a separate feature.

Callable Bonds