Extendable notes are redeemable at par at the option of the ___________.
A) holder only
B) company only
C) trustee only
D) holder and trustee

Question

Quizplus · Accepted Answer

Extendable notes are a type of bond or debt security with a maturity date that can be extended by the issuer. These notes typically have a fixed interest rate and principal amount, but give the holder the option to extend the maturity date of the note. This means that the holder of the extendable note has the right to redeem the note at par (its face value) at the option of the holder. The company or the trustee does not have the right to redeem it. Therefore, the correct choice is A) holder only.

Extendable Notes Are Redeemable at Par at the Option of the ___________