A call feature on bonds allows the issuer to buy back the bonds from investors before the maturity date.

Name: A call feature on bonds allows the issuer to buy back the bonds from investors before the maturity date.
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

A call feature allows the issuer to repurchase bonds before their maturity date, typically at a premium over the face value, giving the issuer flexibility to refinance debt if interest rates decline.

A Call Feature on Bonds Allows the Issuer to Buy