If a bond issue is callable,the call price generally is:
A)less than par value.
B)variable based on the market rate of interest.
C)equal to par value.
D)constant over the life of the debt.
E)set so it decreases as the bond approaches maturity.

Question

Quizplus · Accepted Answer

Callable bonds often have a call price that decreases as the bond approaches maturity, providing an incentive for the issuer to redeem the bonds before maturity as interest rates change or their financial situation improves.

If a Bond Issue Is Callable,the Call Price Generally Is