Corporations typically 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

The term "callable" refers to the ability of the corporation to call back, or repurchase, the debt issue prior to maturity at a fixed price. Option A, indentured, refers to a legal contract outlining the terms and conditions of a debt issue. Option B, protected, is vague and doesn't provide any specific information about the debt issue. Option C, convertible, refers to a debt issue that can be converted into equity (such as common stock) at a predetermined price.

Corporations Typically Have the Right to Repurchase a Debt Issue