The call feature of a long-term bond
A) is an optional retirement provision
B) states the call price
C) allows the issuer to replace a high coupon bond with one with a lower coupon bond
D) all the above are correct

Question

Quizplus · Accepted Answer

The call feature allows the issuer to retire the bond early, often to replace it with a lower coupon bond if interest rates fall. It also includes details like the call price.

The Call Feature of a Long-Term Bond