If an issuer retires a debt issue before maturity,the specific amount paid to do so is called the:
A)amortized payoff.
B)call price.
C)sinking fund amount.
D)the discount.
E)par or face amount.

Question

Quizplus · Accepted Answer

The specific amount paid to retire a debt issue before maturity is called the call price. This is the price specified in the bond indenture that the issuer must pay to call or retire the debt. It may be equal to par or may include a premium.

If an Issuer Retires a Debt Issue Before Maturity,the Specific