Callable bonds
A)Can be exchanged for a fixed number of the issuing corporation's common shares
B)Do not require payment of interest over the life of the bond issue
C)Have an option whereby the issuing corporation may redeem them under specified conditions
D)Are usually not registered
E)Are also called debentures

Question

Quizplus · Accepted Answer

Callable bonds have an option for the issuing corporation to redeem them under specified conditions. They are not exchangeable for common shares, do require payment of interest, may or may not be registered, and are not always referred to as debentures.

Callable Bonds