Which of the following bonds give the issuer the right to repay the debt prior to maturity?

Question

Quizplus · Accepted Answer

Callable bonds give the issuer the right to repay the debt prior to maturity. Municipal bonds are issued by local governments, but this does not necessarily give them the right to repay the debt prior to maturity. Convertible bonds give the bondholder the right to convert the bond into a predetermined number of shares of the issuer's common stock. Zero coupon bonds do not pay periodic interest but are sold at a discount to face value and redeemed at face value at maturity.

Which of the Following Bonds Give the Issuer the Right