A provision in a bond issue that grants the issuer the right to retire the debt, fully or partially, before the scheduled maturity date is called:
A) A tax provision.
B) A call provision.
C) A put provision.
D) A conversion provision.
E) None of the above.

Question

Quizplus · Accepted Answer

A call provision allows the issuer to retire the debt early, providing flexibility to refinance if interest rates fall.

A Provision in a Bond Issue That Grants the Issuer