The ________ provision sets the call price as the ________ of the remaining coupons.

Question

Quizplus · Accepted Answer

The provision being referred to is the Canada Call provision, which allows the issuer of a bond to redeem it before maturity if certain conditions are met. The call price is typically set as the present value of the remaining coupons, meaning the amount of money that would need to be invested now in order to generate the remaining coupon payments. Therefore, the best choice is D, which specifies that the call price is set as the present value of the remaining coupons.

The ________ Provision Sets the Call Price as the ________

The Provision Sets the Call Price as the