Indentures that allow the issuer to repurchase the bond at par value or by paying a premium are known as a call option.

Name: Indentures that allow the issuer to repurchase the bond at par value or by paying a premium are known as a call option.
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This statement is true. A call option gives the issuer the right to repurchase the bond at a predetermined price, which is typically the par value of the bond. The issuer may also have to pay a premium to exercise the call option early.

Indentures That Allow the Issuer to Repurchase the Bond at Par