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WordTechGuru Issues Bonds with a Call Provision, Which Allows Them

Question 7

Multiple Choice

WordTechGuru issues bonds with a call provision, which allows them the option to pay off all or part of their bonds before the maturity date. Assuming WordTechGuru is like most companies whose bonds have a call provision, which of these statements best describes the WordTechGuru's call provision?


A) The call provision will list call dates and prices.
B) The call provision will likely list call dates, but without prices specified until closer to those dates.
C) The call provision will be adjusted as to dates and prices at any time after issue, but before the maturity date.
D) The call provision will likely have a single stated buyback price, regardless of the date it is called.

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