Bonds subject to a redemption provision, which permits the corporation to redeem, or pay off, all or a part of the issue before maturity at a specified redemption price are known as:
A) income bonds.
B) callable bonds.
C) convertible bonds.
D) secured bonds.

Question

Quizplus · Accepted Answer

Callable bonds are those that can be redeemed by the issuer before their maturity date at a specified price. This feature allows the issuer to take advantage of declining interest rates by refinancing the debt at a lower cost.

Bonds Subject to a Redemption Provision, Which Permits the Corporation