Bonds that are subject to retirement prior to maturity at the option of the issuer are called
A) debentures
B) callable bonds
C) early retirement bonds
D) options

Question

Quizplus · Accepted Answer

Callable bonds are bonds that give the issuer the option to call or redeem the bonds prior to their maturity date. This is done to take advantage of lower interest rates or a change in the issuer's financial situation. Debentures are unsecured bonds, and early retirement bonds and options are not commonly used terms in the context of bond investing.

Bonds That Are Subject to Retirement Prior to Maturity at the Option