The ______gives the bond issuer an option to redeem a specified fraction of the bond issue within a specified period at a predetermined price, but only by using funds from a subsequent equity offering.
A)subsequent events provision
B)clawback provision
C)contingency provision
D)conversion provision

Question

Quizplus · Accepted Answer

The clawback provision allows the bond issuer the option to redeem a portion of the bond issue within a certain timeframe at a predetermined price, specifically using funds from a future equity offering. This provision is designed to protect the issuer's interests by allowing them to "claw back" some of the bonds if they can raise money through equity, potentially reducing their debt obligations.

The ______Gives the Bond Issuer an Option to Redeem a Specified