Penny is concerned about the interest rate risk if the company decides to issue bonds. Penny would like protection from interest rate fluctuation. Therefore, the bond issue's features should include a(n)

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A call provision permits the issuer to pay off a bond prior to its maturity date. If interest rates fall, corporations want the flexibility to issue new bonds at the lower interest rate, and then proceed to call in the previously higher interest carrying bonds early, and pay them off with the proceeds from the new issue.

Penny Is Concerned About the Interest Rate Risk If the Company