The Canada call feature stops a bond being called prior to its maturity because a higher buyback price is involved.

Question

Quizplus · Accepted Answer

The Canada call feature is a provision in a bond that prevents the bond from being called prior to its maturity date if the call price is higher than the face value. This feature is aimed at protecting investors from being subject to an early call at an unfavorable price. Therefore, the statement is true.

The Canada Call Feature Stops a Bond Being Called Prior