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A Deferred Call Provision

Question 32

Multiple Choice

A deferred call provision:


A) requires the bond issuer to pay the current market price, minus any accrued interest, should the bond be called.
B) allows the bond issuer to delay repaying a bond until after the maturity date should the issuer so opt.
C) prohibits the issuer from ever redeeming bonds prior to maturity.
D) prohibits the bond issuer from redeeming callable bonds prior to a specified date.
E) requires the bond issuer pay a call premium that is equal to or greater than one year's coupon should the bond be called.

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