_____ bonds are often called by the firm prior to maturity.
A)Floating rate
B)Mortgage
C)Callable
D)Municipal
E)Corporate

Question

_____ bonds are often called by the firm prior to maturity. 
A)Floating rate
B)Mortgage
C)Callable
D)Municipal
E)Corporate

Quizplus · Accepted Answer

Callable bonds give the issuer the option to repay the bond before its maturity date, usually when interest rates have decreased, allowing the issuer to refinance at a lower rate. As a result, callable bonds are often called by the firm prior to maturity.

_____ Bonds Are Often Called by the Firm Prior to Maturity