Bonds that contain a provision that allows the issuing corporation to buy back the bonds prior to the maturity date are called
A) unsecured bonds
B) callable bonds.
C) convertible bonds.
D) coupon bonds

Question

Quizplus · Accepted Answer

Callable bonds contain a provision that allows the issuing corporation to buy back the bonds prior to the maturity date. Unsecured bonds do not have any collateral backing, convertible bonds allow the bondholder to convert the bond into a specific number of shares of stock, and coupon bonds pay interest based on a fixed coupon rate.

Bonds That Contain a Provision That Allows the Issuing Corporation