Which one of the following is designed to beneﬁt the corporation rather than the bondholder?

Question

Quizplus · Accepted Answer

Call provision allows the corporation to redeem the bond before maturity at a specified price, which benefits the corporation by allowing them to repay the debt early and potentially save on interest payments. This does not necessarily benefit the bondholder, who may have preferred to receive interest payments for the full term of the bond.

Which One of the Following Is Designed to Beneﬁt the Corporation