Which of the following is true?
A) A callable bond allows the lender to ask for the principal to be repaid early
B) A callable bond allows the borrower to repay the principal early
C) A callable bond is a bond with an embedded stock option
D) None of the above

Question

Quizplus · Accepted Answer

A callable bond allows the issuer/lender to ask for the principal to be repaid early. This means that the borrower may have to repay the loan sooner than anticipated.

Which of the Following Is True