Corporations often have the right to repurchase a debt issue prior to maturity at a fixed price. Such debt issues are said to be
A)indentured.
B)protected.
C)convertible.
D)callable.

Question

Quizplus · Accepted Answer

Debt issues that can be repurchased by the corporation prior to maturity at a fixed price are known as callable bonds. The corporation has the right, but not the obligation, to call back the bonds from investors.

Corporations Often Have the Right to Repurchase a Debt Issue