Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called
A) callable bonds.
B) early retirement bonds.
C) options.
D) debentures.

Question

Quizplus · Accepted Answer

Callable bonds can be retired by the issuer at a certain dollar amount prior to their maturity. Option C and D are not relevant to the definition of these types of bonds, and there is no commonly-known term for "early retirement bonds."

Bonds That Are Subject to Retirement at a Stated Dollar