Additional features offered by bonds may include:

Question

Quizplus · Accepted Answer

Option (a) refers to a call feature, which enables the issuer to redeem the bond before the maturity date at a predetermined price. Option (c) refers to convertible bonds, which allow bondholders to convert their bonds into a predetermined number of company shares. Therefore, only options (a) and (c) offer additional features that can be found on some types of bonds. Options (b) and (d) are incorrect because the issuer is usually obligated to make interest payments to bondholders, and not making these payments would be considered a default.

Additional Features Offered by Bonds May Include