Call provisions are often part of ______________, but usually not bonds issued by ______________.

Question

Quizplus · Accepted Answer

Call provisions are often included in corporate and municipal bonds, but are not typically found in bonds issued by the Federal Government. Federal Government bonds are considered to be very safe and dependable, and therefore are not frequently callable, unlike some corporate and municipal bonds which may carry more risk. Zero coupon bonds are not typically callable because they do not pay interest on a regular basis, but rather are sold at a discount to their face value and pay out the full face value at maturity.

Call Provisions Are Often Part of ______________, but Usually Not