A call provision on bonds normally

Name: A call provision on bonds normally
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

A call provision on bonds allows the firm to buy back bonds that it previously issued at a predetermined price, known as the call price. This gives the firm the option to retire its debt early if it becomes financially advantageous to do so. It does not give the firm the ability to sell new bonds at par or above market value, nor does it allow it to sell bonds to the Treasury.

A Call Provision on Bonds Normally