Interest rates have gone up to 14% since you purchased your 10% preferred shares.You would be best off if the shares had a(n)______ feature.
A)call
B)extraction
C)redemption
D)retraction

Question

Quizplus · Accepted Answer

A retraction feature allows the shareholder to sell the shares back to the issuer at a predetermined price, which would be beneficial when interest rates rise above the dividend rate of the preferred shares.

Interest Rates Have Gone Up to 14% Since You Purchased